Systems and Methods to Identify Differences in Spending Patterns

ABSTRACT

In one aspect, a system includes a transaction handler to process transactions, a data warehouse to store data recording the transactions, and at least one processor coupled with the data warehouse and configured to identify a first set of customers who made first transactions correlated with an advertisement, identify a second set of customers not in the first set of customers, and determine a difference between a first pattern in a first set of transactions of the first set of customers and a second pattern in a second set of transactions of the second set of customers.

CROSS-REFERENCE TO RELATED APPLICATIONS

The present application claims the benefit of Prov. U.S. Pat. App. Ser.No. 61/315,855, filed Mar. 19, 2010 and entitled “Systems and Methods toIdentify Changes in Spending Patterns,” the disclosure of which ishereby incorporated herein by reference.

FIELD OF THE TECHNOLOGY

At least some embodiments of the present disclosure relate to theprocessing of transaction data, such as records of payments made viacredit cards, debit cards, prepaid cards, etc., and/or providinginformation based on the processing of the transaction data.

BACKGROUND

Millions of transactions occur daily through the use of payment cards,such as credit cards, debit cards, prepaid cards, etc. Correspondingrecords of the transactions are recorded in databases for settlement andfinancial recordkeeping (e.g., to meet the requirements of governmentregulations). Such data can be mined and analyzed for trends,statistics, and other analyses. Sometimes such data are mined forspecific advertising goals, such as to provide targeted offers toaccount holders, as described in PCT Pub. No. WO 2008/067543 A2,published on Jun. 5, 2008 and entitled “Techniques for Targeted Offers.”

U.S. Pat. App. Pub. No. 2009/0216579, published on Aug. 27, 2009 andentitled “Tracking Online Advertising using Payment Services,” disclosesa system in which a payment service identifies the activity of a userusing a payment card as corresponding with an offer associated with anonline advertisement presented to the user.

U.S. Pat. No. 6,298,330, issued on Oct. 2, 2001 and entitled“Communicating with a Computer Based on the Offline Purchase History ofa Particular Consumer,” discloses a system in which a targetedadvertisement is delivered to a computer in response to receiving anidentifier, such as a cookie, corresponding to the computer.

U.S. Pat. No. 7,035,855, issued on Apr. 25, 2006 and entitled “Processand System for Integrating Information from Disparate Databases forPurposes of Predicting Consumer Behavior,” discloses a system in whichconsumer transactional information is used for predicting consumerbehavior.

U.S. Pat. No. 6,505,168, issued on Jan. 7, 2003 and entitled “System andMethod for Gathering and Standardizing Customer Purchase Information forTarget Marketing,” discloses a system in which categories andsub-categories are used to organize purchasing information by creditcards, debit cards, checks and the like. The customer purchaseinformation is used to generate customer preference information formaking targeted offers.

U.S. Pat. No. 7,444,658, issued on Oct. 28, 2008 and entitled “Methodand System to Perform Content Targeting,” discloses a system in whichadvertisements are selected to be sent to users based on a userclassification performed using credit card purchasing data.

U.S. Pat. App. Pub. No. 2005/0055275, published on Mar. 10, 2005 andentitled “System and Method for Analyzing Marketing Efforts,” disclosesa system that evaluates the cause and effect of advertising andmarketing programs using card transaction data.

U.S. Pat. App. Pub. No. 2008/0217397, published on Sep. 11, 2008 andentitled “Real-Time Awards Determinations,” discloses a system forfacilitating transactions with real-time awards determinations for acardholder, in which the award may be provided to the cardholder as acredit on the cardholder's statement.

The disclosures of the above discussed patent documents are herebyincorporated herein by reference.

BRIEF DESCRIPTION OF THE DRAWINGS

The embodiments are illustrated by way of example and not limitation inthe figures of the accompanying drawings in which like referencesindicate similar elements.

FIG. 1 illustrates a system to provide services based on transactiondata according to one embodiment.

FIG. 2 illustrates the generation of an aggregated spending profileaccording to one embodiment.

FIG. 3 shows a method to generate an aggregated spending profileaccording to one embodiment.

FIG. 4 shows a system to provide information based on transaction dataaccording to one embodiment.

FIG. 5 illustrates a transaction terminal according to one embodiment.

FIG. 6 illustrates an account identifying device according to oneembodiment.

FIG. 7 illustrates a data processing system according to one embodiment.

FIG. 8 shows the structure of account data for providing loyaltyprograms according to one embodiment.

FIG. 9 shows a system to obtain purchase details according to oneembodiment.

FIG. 10 shows a system to automate the processing of offers in responseto purchases made in various channels according to one embodiment.

FIGS. 11-14 illustrate user interfaces for multi-channel offerredemption according to one embodiment.

FIG. 15 illustrates a notification of offer redemption according to oneembodiment.

FIG. 16 illustrates a method for offer redemption according to oneembodiment.

FIGS. 17-21 illustrate screen images of a user interface for offerredemption according to one embodiment.

FIG. 22 shows an example to send a mobile message when an offer is savedaccording to one embodiment.

FIG. 23 shows a system to identify differences in spending patternsaccording to one embodiment.

FIG. 24 shows a method to identify differences in spending patternsaccording to one embodiment.

DETAILED DESCRIPTION Introduction

In one embodiment, transaction data, such as records of transactionsmade via credit accounts, debit accounts, prepaid accounts, bankaccounts, stored value accounts and the like, is processed to provideinformation for various services, such as reporting, benchmarking,advertising, content or offer selection, customization, personalization,prioritization, etc.

In one embodiment, an advertising network is provided based on atransaction handler to present personalized or targetedadvertisements/offers on behalf of advertisers. A computing apparatusof, or associated with, the transaction handler uses the transactiondata and/or other data, such as account data, merchant data, searchdata, social networking data, web data, etc., to develop intelligenceinformation about individual customers, or certain types or groups ofcustomers. The intelligence information can be used to select, identify,generate, adjust, prioritize, and/or personalize advertisements/offersto the customers. In one embodiment, the transaction handler is furtherautomated to process the advertisement fees charged to the advertisers,using the accounts of the advertisers, in response to the advertisingactivities.

In one embodiment, the computing apparatus of, or associated with, thetransaction handler (e.g., a processor of credit cards, debit cards,prepaid cards, etc.) is configured to provide information based on, orderived from, transactional data to enhance third party productofferings. For example, the transaction handler may aggregate individualtransaction based information to improve the insights that a third partyproduct offering could offer to an advertiser or merchant and/or to showadvertising ROI (Return on Investment). For example, the transactionhandler may provide offline purchase information, customer spendinghabits, merchant benchmarks and peer set data. Some examples arediscussed in the section entitled “ROI TOOLS.”

In one embodiment, the computing apparatus is configured to correlateadvertisements with purchases to determine the difference in spendingpatterns. For example, the correlation result can be used to determinethe differences in spending patterns between those who are exposed tocertain advertisements and those who are not. For example, the purchasebehaviors of the consumers who saw a digital advertisement in the mallfrom 1-2 PM can be compared to the purchase behaviors of the consumerwho did not see the digital advertisement. The identified differences inspending patterns can be used by merchants to optimize advertisementcampaigns to improve ROI. Details and examples about the determinationof the spending differences in one embodiment are provided in thesection entitled “SPENDING PATTERNS.”

In one embodiment, the computing apparatus correlates transactions withactivities that occurred outside the context of the transaction, such asonline advertisements presented to the customers that at least in partcause offline transactions. The correlation data can be used todemonstrate the success of the advertisements, and/or to improveintelligence information about how individual customers and/or varioustypes or groups of customers respond to the advertisements.

In one embodiment, the computing apparatus correlates, or providesinformation to facilitate the correlation of, transactions with onlineactivities of the customers, such as searching, web browsing, socialnetworking and consuming advertisements, with other activities, such aswatching television programs, and/or with events, such as meetings,announcements, natural disasters, accidents, news announcements, etc.

In one embodiment, the correlation results are used in predictive modelsto predict transactions and/or spending patterns based on activities orevents, to predict activities or events based on transactions orspending patterns, to provide alerts or reports, etc.

In one embodiment, a single entity operating the transaction handlerperforms various operations in the services provided based on thetransaction data. For example, in the presentation of the personalizedor targeted advertisements, the single entity may perform the operationssuch as generating the intelligence information, selecting relevantintelligence information for a given audience, selecting, identifying,adjusting, prioritizing, personalizing and/or generating advertisementsbased on selected relevant intelligence information, and facilitatingthe delivery of personalized or targeted advertisements, etc.Alternatively, the entity operating the transaction handler cooperateswith one or more other entities by providing information to theseentities to allow these entities to perform at least some of theoperations for presentation of the personalized or targetedadvertisements.

In one embodiment, a portal of a transaction handler is to store datarepresenting offers from merchants, and to associate user selectedoffers with the financial accounts of the respective users, if the usersselect the advertisements containing the offers. When the financialaccounts are used to make payments processed by the transaction handlerfor purchases that satisfy the respective redemption conditions of theoffers, the transaction handler and/or the portal is to detect suchpayment transactions and fulfill the offers in an automated way.

In one embodiment, examples of offers include discounts, incentives,rebates, coupons, rewards, cash back, etc.; and examples of financialaccounts of users include credit card accounts, debit card accounts,prepaid card accounts, bank accounts, etc. In one embodiment, thetransaction handler is to provide the benefit of the offer to therespective user via issuing statement credits to the financial accountof the user. Thus, the system provides a normalized, real-time, onlineand offline, redemption service for offers from merchants.

In one embodiment, the advertisement providing the offer is configuredto have multiple selectable-regions, when the advertisement is presentedin a web browser of a user. One of the selectable-regions contains aUniform Resource Locator (URL) of the advertiser or merchant, which whenselected directs the user to the website of the advertiser or merchant.A separate one of the selectable-regions contains a Uniform ResourceLocator (URL) of the portal of the transaction handler, which whenselected directs the user to the portal for access to a user interfaceto register the offer with a financial account of the user.

When the transaction handler and/or the portal detects that the user ismaking a payment using the financial account for a purchase thatsatisfies the redemption requirements of the offer, the portal is tonotify the user of the eligibility of the redemption of the offer; andthe transaction handler and/or the portal is to automate the processingof the offer for redemption (e.g., via statement credits to thefinancial account of the user, or via benefits afforded via a loyaltyprogram, such as reward points, loyalty points, etc.). Since thetransaction handler records the transaction data for transactions madein various purchase channels, such as online marketplaces, offline inretail stores, phone orders, etc., the registered offer can be redeemedin an automated way, not limited by the channel used to make thepurchase and not limited by the context of the purchase.

Further details and examples about offer fulfillment operations in oneembodiment are provided in the section entitled “OFFER REDEMPTION.”

System

FIG. 1 illustrates a system to provide services based on transactiondata according to one embodiment. In FIG. 1, the system includes atransaction terminal (105) to initiate financial transactions for a user(101), a transaction handler (103) to generate transaction data (109)from processing the financial transactions of the user (101) (and thefinancial transactions of other users), a profile generator (121) togenerate transaction profiles (127) based on the transaction data (109)to provide information/intelligence about user preferences and spendingpatterns, a point of interaction (107) to provide information and/oroffers to the user (101), a user tracker (113) to generate user data(125) to identify the user (101) using the point of interaction (107), aprofile selector (129) to select a profile (131) specific to the user(101) identified by the user data (125), and an advertisement selector(133) to select, identify, generate, adjust, prioritize and/orpersonalize advertisements for presentation to the user (101) on thepoint of interaction (107) via a media controller (115).

In one embodiment, the system further includes a correlator (117) tocorrelate user specific advertisement data (119) with transactionsresulting from the user specific advertisement data (119). Thecorrelation results (123) can be used by the profile generator (121) toimprove the transaction profiles (127).

In one embodiment, the transaction profiles (127) are generated from thetransaction data (109) in a way as illustrated in FIGS. 2 and 3. Forexample, in FIG. 3, an aggregated spending profile (341) is generatedvia the factor analysis (327) and cluster analysis (329) to summarize(335) the spending patterns/behaviors reflected in the transactionrecords (301).

In one embodiment, a data warehouse (149) as illustrated in FIG. 4 iscoupled with the transaction handler (103) to store the transaction data(109) and other data, such as account data (111), transaction profiles(127) and correlation results (123). In FIG. 4, a portal (143) iscoupled with the data warehouse (149) to provide data or informationderived from the transaction data (109), in response to a query requestfrom a third party or as an alert or notification message.

In FIG. 4, the transaction handler (103) is coupled between an issuerprocessor (145) in control of a consumer account (146) and an acquirerprocessor (147) in control of a merchant account (148). An accountidentification device (141) is configured to carry the accountinformation (142) that identifies the consumer account (146) with theissuer processor (145) and provide the account information (142) to thetransaction terminal (105) of a merchant to initiate a transactionbetween the user (101) and the merchant.

FIGS. 5 and 6 illustrate examples of transaction terminals (105) andaccount identification devices (141). FIG. 7 illustrates the structureof a data processing system that can be used to implement, with more orfewer elements, at least some of the components in the system, such asthe point of interaction (107), the transaction handler (103), theportal (143), the data warehouse (149), the account identificationdevice (141), the transaction terminal (105), the user tracker (113),the profile generator (121), the profile selector (129), theadvertisement selector (133), the media controller (115), etc. Someembodiments use more or fewer components than those illustrated in FIGS.1 and 4-7, as further discussed in the section entitled “VARIATIONS.”

In one embodiment, the transaction data (109) relates to financialtransactions processed by the transaction handler (103); and the accountdata (111) relates to information about the account holders involved inthe transactions. Further data, such as merchant data that relates tothe location, business, products and/or services of the merchants thatreceive payments from account holders for their purchases, can be usedin the generation of the transaction profiles (127, 341).

In one embodiment, the financial transactions are made via an accountidentification device (141), such as financial transaction cards (e.g.,credit cards, debit cards, banking cards, etc.); the financialtransaction cards may be embodied in various devices, such as plasticcards, chips, radio frequency identification (RFID) devices, mobilephones, personal digital assistants (PDAs), etc.; and the financialtransaction cards may be represented by account identifiers (e.g.,account numbers or aliases). In one embodiment, the financialtransactions are made via directly using the account information (142),without physically presenting the account identification device (141).

Further features, modifications and details are provided in varioussections of this description.

Centralized Data Warehouse

In one embodiment, the transaction handler (103) maintains a centralizeddata warehouse (149) organized around the transaction data (109). Forexample, the centralized data warehouse (149) may include, and/orsupport the determination of, spending band distribution, transactioncount and amount, merchant categories, merchant by state, cardholdersegmentation by velocity scores, and spending within merchant target,competitive set and cross-section.

In one embodiment, the centralized data warehouse (149) providescentralized management but allows decentralized execution. For example,a third party strategic marketing analyst, statistician, marketer,promoter, business leader, etc., may access the centralized datawarehouse (149) to analyze customer and shopper data, to providefollow-up analyses of customer contributions, to develop propensitymodels for increased conversion of marketing campaigns, to developsegmentation models for marketing, etc. The centralized data warehouse(149) can be used to manage advertisement campaigns and analyze responseprofitability.

In one embodiment, the centralized data warehouse (149) includesmerchant data (e.g., data about sellers), customer/business data (e.g.,data about buyers), and transaction records (301) between sellers andbuyers over time. The centralized data warehouse (149) can be used tosupport corporate sales forecasting, fraud analysis reporting,sales/customer relationship management (CRM) business intelligence,credit risk prediction and analysis, advanced authorization reporting,merchant benchmarking, business intelligence for small business,rewards, etc.

In one embodiment, the transaction data (109) is combined with externaldata, such as surveys, benchmarks, search engine statistics,demographics, competition information, emails, etc., to flag key eventsand data values, to set customer, merchant, data or event triggers, andto drive new transactions and new customer contacts.

Transaction Profile

In FIG. 1, the profile generator (121) generates transaction profiles(127) based on the transaction data (109), the account data (111),and/or other data, such as non-transactional data, wish lists, merchantprovided information, address information, information from socialnetwork websites, information from credit bureaus, information fromsearch engines, information about insurance claims, information from DNAdatabanks, and other examples discussed in U.S. patent application Ser.No. 12/614,603, filed Nov. 9, 2009 and entitled “Analyzing LocalNon-Transactional Data with Transactional Data in Predictive Models,”the disclosure of which is hereby incorporated herein by reference.

In one embodiment, the transaction profiles (127) provide intelligenceinformation on the behavior, pattern, preference, propensity, tendency,frequency, trend, and budget of the user (101) in making purchases. Inone embodiment, the transaction profiles (127) include information aboutwhat the user (101) owns, such as points, miles, or other rewardscurrency, available credit, and received offers, such as coupons loadedinto the accounts of the user (101). In one embodiment, the transactionprofiles (127) include information based on past offer/coupon redemptionpatterns. In one embodiment, the transaction profiles (127) includeinformation on shopping patterns in retail stores as well as online,including frequency of shopping, amount spent in each shopping trip,distance of merchant location (retail) from the address of the accountholder(s), etc.

In one embodiment, the transaction handler (103) provides at least partof the intelligence for the prioritization, generation, selection,customization and/or adjustment of an advertisement for delivery withina transaction process involving the transaction handler (103). Forexample, the advertisement may be presented to a customer in response tothe customer making a payment via the transaction handler (103).

Some of the transaction profiles (127) are specific to the user (101),or to an account of the user (101), or to a group of users of which theuser (101) is a member, such as a household, family, company,neighborhood, city, or group identified by certain characteristicsrelated to online activities, offline purchase activities, merchantpropensity, etc.

In one embodiment, the profile generator (121) generates and updates thetransaction profiles (127) in batch mode periodically. In otherembodiments, the profile generator (121) generates the transactionprofiles (127) in real-time, or just in time, in response to a requestreceived in the portal (143) for such profiles.

In one embodiment, the transaction profiles (127) include the values fora set of parameters. Computing the values of the parameters may involvecounting transactions that meet one or more criteria, and/or building astatistically-based model in which one or more calculated values ortransformed values are put into a statistical algorithm that weightseach value to optimize its collective predictiveness for variouspredetermined purposes.

Further details and examples about the transaction profiles (127) in oneembodiment are provided in the section entitled “AGGREGATED SPENDINGPROFILE.”

Non-Transactional Data

In one embodiment, the transaction data (109) is analyzed in connectionwith non-transactional data to generate transaction profiles (127)and/or to make predictive models.

In one embodiment, transactions are correlated with non-transactionalevents, such as news, conferences, shows, announcements, market changes,natural disasters, etc. to establish cause and effect relationships topredict future transactions or spending patterns. For example,non-transactional data may include the geographic location of a newsevent, the date of an event from an events calendar, the name of aperformer for an upcoming concert, etc. The non-transactional data canbe obtained from various sources, such as newspapers, websites, blogs,social networking sites, etc.

In one embodiment, when the cause and effect relationships between thetransactions and non-transactional events are known (e.g., based onprior research results, domain knowledge, expertise), the relationshipscan be used in predictive models to predict future transactions orspending patterns, based on events that occurred recently or arehappening in real-time.

In one embodiment, the non-transactional data relates to events thathappened in a geographical area local to the user (101) that performedthe respective transactions. In one embodiment, a geographical area islocal to the user (101) when the distance from the user (101) tolocations in the geographical area is within a convenient range fordaily or regular travel, such as 20, 50 or 100 miles from an address ofthe user (101), or within the same city or zip code area of an addressof the user (101). Examples of analyses of local non-transactional datain connection with transaction data (109) in one embodiment are providedin U.S. patent application Ser. No. 12/614,603, filed Nov. 9, 2009 andentitled “Analyzing Local Non-Transactional Data with Transactional Datain Predictive Models,” the disclosure of which is hereby incorporatedherein by reference.

In one embodiment, the non-transactional data is not limited to localnon-transactional data. For example, national non-transactional data canalso be used.

In one embodiment, the transaction records (301) are analyzed infrequency domain to identify periodic features in spending events. Theperiodic features in the past transaction records (301) can be used topredict the probability of a time window in which a similar transactionwill occur. For example, the analysis of the transaction data (109) canbe used to predict when a next transaction having the periodic featurewill occur, with which merchant, the probability of a repeatedtransaction with a certain amount, the probability of exception, theopportunity to provide an advertisement or offer such as a coupon, etc.In one embodiment, the periodic features are detected through countingthe number of occurrences of pairs of transactions that occurred withina set of predetermined time intervals and separating the transactionpairs based on the time intervals. Some examples and techniques for theprediction of future transactions based on the detection of periodicfeatures in one embodiment are provided in U.S. patent application Ser.No. 12/773,770, filed May 4, 2010 and entitled “Frequency-BasedTransaction Prediction and Processing,” the disclosure of which ishereby incorporated herein by reference.

Techniques and details of predictive modeling in one embodiment areprovided in U.S. Pat. Nos. 6,119,103, 6,018,723, 6,658,393, 6,598,030,and 7,227,950, the disclosures of which are hereby incorporated hereinby reference.

In one embodiment, offers are based on the point-of-service to offereedistance to allow the user (101) to obtain in-person services. In oneembodiment, the offers are selected based on transaction history andshopping patterns in the transaction data (109) and/or the distancebetween the user (101) and the merchant. In one embodiment, offers areprovided in response to a request from the user (101), or in response toa detection of the location of the user (101). Examples and details ofat least one embodiment are provided in U.S. patent application Ser. No.11/767,218, filed Jun. 22, 2007, assigned Pub. No. 2008/0319843, andentitled “Supply of Requested Offer Based on Point-of Service to OffereeDistance,” U.S. patent application Ser. No. 11/755,575, filed May 30,2007, assigned Pub. No. 2008/0300973, and entitled “Supply of RequestedOffer Based on Offeree Transaction History,” U.S. patent applicationSer. No. 11/855,042, filed Sep. 13, 2007, assigned Pub. No.2009/0076896, and entitled “Merchant Supplied Offer to a Consumer withina Predetermined Distance,” U.S. patent application Ser. No. 11/855,069,filed Sep. 13, 2007, assigned Pub. No. 2009/0076925, and entitled“Offeree Requested Offer Based on Point-of Service to Offeree Distance,”and U.S. patent application Ser. No. 12/428,302, filed Apr. 22, 2009 andentitled “Receiving an Announcement Triggered by Location Data,” thedisclosures of which applications are hereby incorporated herein byreference.

Targeting Advertisement

In FIG. 1, an advertisement selector (133) prioritizes, generates,selects, adjusts, and/or customizes the available advertisement data(135) to provide user specific advertisement data (119) based at leastin part on the user specific profile (131). The advertisement selector(133) uses the user specific profile (131) as a filter and/or a set ofcriteria to generate, identify, select and/or prioritize advertisementdata for the user (101). A media controller (115) delivers the userspecific advertisement data (119) to the point of interaction (107) forpresentation to the user (101) as the targeted and/or personalizedadvertisement.

In one embodiment, the user data (125) includes the characterization ofthe context at the point of interaction (107). Thus, the use of the userspecific profile (131), selected using the user data (125), includes theconsideration of the context at the point of interaction (107) inselecting the user specific advertisement data (119).

In one embodiment, in selecting the user specific advertisement data(119), the advertisement selector (133) uses not only the user specificprofile (131), but also information regarding the context at the pointof interaction (107). For example, in one embodiment, the user data(125) includes information regarding the context at the point ofinteraction (107); and the advertisement selector (133) explicitly usesthe context information in the generation or selection of the userspecific advertisement data (119).

In one embodiment, the advertisement selector (133) may query forspecific information regarding the user (101) before providing the userspecific advertisement data (119). The queries may be communicated tothe operator of the transaction handler (103) and, in particular, to thetransaction handler (103) or the profile generator (121). For example,the queries from the advertisement selector (133) may be transmitted andreceived in accordance with an application programming interface orother query interface of the transaction handler (103), the profilegenerator (121) or the portal (143) of the transaction handler (103).

In one embodiment, the queries communicated from the advertisementselector (133) may request intelligence information regarding the user(101) at any level of specificity (e.g., segment level, individuallevel). For example, the queries may include a request for a certainfield or type of information in a cardholder's aggregated spendingprofile (341). As another example, the queries may include a request forthe spending level of the user (101) in a certain merchant category overa prior time period (e.g., six months).

In one embodiment, the advertisement selector (133) is operated by anentity that is separate from the entity that operates the transactionhandler (103). For example, the advertisement selector (133) may beoperated by a search engine, a publisher, an advertiser, an ad network,or an online merchant. The user specific profile (131) is provided tothe advertisement selector (133) to assist in the customization of theuser specific advertisement data (119).

In one embodiment, advertising is targeted based on shopping patterns ina merchant category (e.g., as represented by a Merchant Category Code(MCC)) that has high correlation of spending propensity with othermerchant categories (e.g., other MCCs). For example, in the context of afirst MCC for a targeted audience, a profile identifying second MCCsthat have high correlation of spending propensity with the first MCC canbe used to select advertisements for the targeted audience.

In one embodiment, the aggregated spending profile (341) is used toprovide intelligence information about the spending patterns,preferences, and/or trends of the user (101). For example, a predictivemodel can be established based on the aggregated spending profile (341)to estimate the needs of the user (101). For example, the factor values(344) and/or the cluster ID (343) in the aggregated spending profile(341) can be used to determine the spending preferences of the user(101). For example, the channel distribution (345) in the aggregatedspending profile (341) can be used to provide a customized offertargeted for a particular channel, based on the spending patterns of theuser (101).

In one embodiment, mobile advertisements, such as offers and coupons,are generated and disseminated based on aspects of prior purchases, suchas timing, location, and nature of the purchases, etc. In oneembodiment, the size of the benefit of the offer or coupon is based onpurchase volume or spending amount of the prior purchase and/or thesubsequent purchase that may qualify for the redemption of the offer.Further details and examples of one embodiment are provided in U.S.patent application Ser. No. 11/960,162, filed Dec. 19, 2007, assignedPub. No. 2008/0201226, and entitled “Mobile Coupon Method and PortableConsumer Device for Utilizing Same,” the disclosure of which is herebyincorporated herein by reference.

In one embodiment, conditional rewards are provided to the user (101);and the transaction handler (103) monitors the transactions of the user(101) to identify redeemable rewards that have satisfied the respectiveconditions. In one embodiment, the conditional rewards are selectedbased on transaction data (109). Further details and examples of oneembodiment are provided in U.S. patent application Ser. No. 11/862,487,filed Sep. 27, 2007 and entitled “Consumer Specific ConditionalRewards,” the disclosure of which is hereby incorporated herein byreference. The techniques to detect the satisfied conditions ofconditional rewards can also be used to detect the transactions thatsatisfy the conditions specified to locate the transactions that resultfrom online activities, such as online advertisements, searches, etc.,to correlate the transactions with the respective online activities.

Further details about targeted offer delivery in one embodiment areprovided in U.S. patent application Ser. No. 12/185,332, filed Aug. 4,2008, assigned Pub. No. 2010/0030644, and entitled “Targeted Advertisingby Payment Processor History of Cashless Acquired Merchant Transactionon Issued Consumer Account,” and in U.S. patent application Ser. No.12/849,793, filed Aug. 3, 2010 and entitled “Systems and Methods forTargeted Advertisement Delivery,” the disclosure of which is herebyincorporated herein by reference.

Profile Matching

In FIG. 1, the user tracker (113) obtains and generates contextinformation about the user (101) at the point of interaction (107),including user data (125) that characterizes and/or identifies the user(101). The profile selector (129) selects a user specific profile (131)from the set of transaction profiles (127) generated by the profilegenerator (121), based on matching the characteristics of thetransaction profiles (127) and the characteristics of the user data(125). For example, the user data (125) indicates a set ofcharacteristics of the user (101); and the profile selector (129)selects the user specific profile (131) for a particular user or groupof users that best matches the set of characteristics specified by theuser data (125).

In one embodiment, the profile selector (129) receives the transactionprofiles (127) in a batch mode. The profile selector (129) selects theuser specific profile (131) from the batch of transaction profiles (127)based on the user data (125). Alternatively, the profile generator (121)generates the transaction profiles (127) in real-time; and the profileselector (129) uses the user data (125) to query the profile generator(121) to generate the user specific profile (131) in real-time, or justin time. The profile generator (121) generates the user specific profile(131) that best matches the user data (125).

In one embodiment, the user tracker (113) identifies the user (101)based on the user's activity on the transaction terminal (105) (e.g.,having visited a set of websites, currently visiting a type of webpages, search behavior, etc.).

In one embodiment, the user data (125) includes an identifier of theuser (101), such as a global unique identifier (GUID), a personalaccount number (PAN) (e.g., credit card number, debit card number, orother card account number), or other identifiers that uniquely andpersistently identify the user (101) within a set of identifiers of thesame type. Alternatively, the user data (125) may include otheridentifiers, such as an Internet Protocol (IP) address of the user(101), a name or user name of the user (101), or a browser cookie ID,which identify the user (101) in a local, temporary, transient and/oranonymous manner. Some of these identifiers of the user (101) may beprovided by publishers, advertisers, ad networks, search engines,merchants, or the user tracker (113). In one embodiment, suchidentifiers are correlated to the user (101) based on the overlapping orproximity of the time period of their usage to establish anidentification reference table.

In one embodiment, the identification reference table is used toidentify the account information (142) (e.g., account number (302))based on characteristics of the user (101) captured in the user data(125), such as browser cookie ID, IP addresses, and/or timestamps on theusage of the IP addresses. In one embodiment, the identificationreference table is maintained by the operator of the transaction handler(103). Alternatively, the identification reference table is maintainedby an entity other than the operator of the transaction handler (103).

In one embodiment, the user tracker (113) determines certaincharacteristics of the user (101) to describe a type or group of usersof which the user (101) is a member. The transaction profile of thegroup is used as the user specific profile (131). Examples of suchcharacteristics include geographical location or neighborhood, types ofonline activities, specific online activities, or merchant propensity.In one embodiment, the groups are defined based on aggregate information(e.g., by time of day, or household), or segment (e.g., by cluster,propensity, demographics, cluster IDs, and/or factor values). In oneembodiment, the groups are defined in part via one or more socialnetworks. For example, a group may be defined based on social distancesto one or more users on a social network website, interactions betweenusers on a social network website, and/or common data in social networkprofiles of the users in the social network website.

In one embodiment, the user data (125) may match different profiles at adifferent granularity or resolution (e.g., account, user, family,company, neighborhood, etc.), with different degrees of certainty. Theprofile selector (129) and/or the profile generator (121) may determineor select the user specific profile (131) with the finest granularity orresolution with acceptable certainty. Thus, the user specific profile(131) is most specific or closely related to the user (101).

In one embodiment, the advertisement selector (133) uses further data inprioritizing, selecting, generating, customizing and adjusting the userspecific advertisement data (119). For example, the advertisementselector (133) may use search data in combination with the user specificprofile (131) to provide benefits or offers to a user (101) at the pointof interaction (107). For example, the user specific profile (131) canbe used to personalize the advertisement, such as adjusting theplacement of the advertisement relative to other advertisements,adjusting the appearance of the advertisement, etc.

Browser Cookie

In one embodiment, the user data (125) uses browser cookie informationto identify the user (101). The browser cookie information is matched toaccount information (142) or the account number (302) to identify theuser specific profile (131), such as aggregated spending profile (341),to present effective, timely, and relevant marketing information to theuser (101) via the preferred communication channel (e.g., mobilecommunications, web, mail, email, point of sale (POS), etc.) within awindow of time that could influence the spending behavior of the user(101). Based on the transaction data (109), the user specific profile(131) can improve audience targeting for online advertising. Thus,customers will get better advertisements and offers presented to them;and the advertisers will achieve better return-on-investment for theiradvertisement campaigns.

In one embodiment, the browser cookie that identifies the user (101) inonline activities, such as web browsing, online searching, and usingsocial networking applications, can be matched to an identifier of theuser (101) in account data (111), such as the account number (302) of afinancial payment card of the user (101) or the account information(142) of the account identification device (141) of the user (101). Inone embodiment, the identifier of the user (101) can be uniquelyidentified via matching IP address, timestamp, cookie ID and/or otheruser data (125) observed by the user tracker (113).

In one embodiment, a look up table is used to map browser cookieinformation (e.g., IP address, timestamp, cookie ID) to the account data(111) that identifies the user (101) in the transaction handler (103).The look up table may be established via correlating overlapping orcommon portions of the user data (125) observed by different entities ordifferent user trackers (113).

For example, in one embodiment, a first user tracker (113) observes thecard number of the user (101) at a particular IP address for a timeperiod identified by a timestamp (e.g., via an online payment process);and a second user tracker (113) observes the user (101) having a cookieID at the same IP address for a time period near or overlapping with thetime period observed by the first user tracker (113). Thus, the cookieID as observed by the second user tracker (113) can be linked to thecard number of the user (101) as observed by the first user tracker(113). The first user tracker (113) may be operated by the same entityoperating the transaction handler (103) or by a different entity. Oncethe correlation between the cookie ID and the card number is establishedvia a database or a look up table, the cookie ID can be subsequentlyused to identify the card number of the user (101) and the account data(111).

In one embodiment, the portal (143) is configured to observe a cardnumber of a user (101) while the user (101) uses an IP address to makean online transaction. Thus, the portal (143) can identify a consumeraccount (146) based on correlating an IP address used to identify theuser (101) and IP addresses recorded in association with the consumeraccount (146).

For example, in one embodiment, when the user (101) makes a paymentonline by submitting the account information (142) to the transactionterminal (105) (e.g., an online store), the transaction handler (103)obtains the IP address from the transaction terminal (105) via theacquirer processor (147). The transaction handler (103) stores data toindicate the use of the account information (142) at the IP address atthe time of the transaction request. When an IP address in the queryreceived in the portal (143) matches the IP address previously recordedby the transaction handler (103), the portal (143) determines that theuser (101) identified by the IP address in the request is the same user(101) associated with the account used in the transaction initiated atthe IP address. In one embodiment, a match is found when the time of thequery request is within a predetermined time period from the transactionrequest, such as a few minutes, one hour, a day, etc. In one embodiment,the query may also include a cookie ID representing the user (101).Thus, through matching the IP address, the cookie ID is associated withthe account information (142) in a persistent way.

In one embodiment, the portal (143) obtains the IP address of the onlinetransaction directly. For example, in one embodiment, a user (101)chooses to use a password in the account data (111) to protect theaccount information (142) for online transactions. When the accountinformation (142) is entered into the transaction terminal (105) (e.g.,an online store or an online shopping cart system), the user (101) isconnected to the portal (143) for the verification of the password(e.g., via a pop up window, or via redirecting the web browser of theuser (101)). The transaction handler (103) accepts the transactionrequest after the password is verified via the portal (143). Throughthis verification process, the portal (143) and/or the transactionhandler (103) obtain the IP address of the user (101) at the time theaccount information (142) is used.

In one embodiment, the web browser of the user (101) communicates theuser-provided password to the portal (143) directly without goingthrough the transaction terminal (105) (e.g., the server of themerchant). Alternatively, the transaction terminal (105) and/or theacquirer processor (147) may relay the password communication to theportal (143) or the transaction handler (103).

In one embodiment, the portal (143) is configured to identify theconsumer account (146) based on the IP address identified in the userdata (125) through mapping the IP address to a street address. Forexample, in one embodiment, the user data (125) includes an IP addressto identify the user (101); and the portal (143) can use a service tomap the IP address to a street address. For example, an Internet serviceprovider knows the street address of the currently assigned IP address.Once the street address is identified, the portal (143) can use theaccount data (111) to identify the consumer account (146) that has acurrent address at the identified street address. Once the consumeraccount (146) is identified, the portal (143) can provide a transactionprofile (131) specific to the consumer account (146) of the user (101).

In one embodiment, the portal (143) uses a plurality of methods toidentify consumer accounts (146) based on the user data (125). Theportal (143) combines the results from the different methods todetermine the most likely consumer account (146) for the user data(125).

Details about the identification of consumer account (146) based on userdata (125) in one embodiment are provided in U.S. patent applicationSer. No. 12/849,798, filed Aug. 3, 2010 and entitled “Systems andMethods to Match Identifiers,” the disclosure of which is herebyincorporated herein by reference.

Close the Loop

In one embodiment, the correlator (117) is used to “close the loop” forthe tracking of consumer behavior across an on-line activity and an“off-line” activity that results at least in part from the on-lineactivity. In one embodiment, online activities, such as searching, webbrowsing, social networking, and/or consuming online advertisements, arecorrelated with respective transactions to generate the correlationresult (123) in FIG. 1. The respective transactions may occur offline,in “brick and mortar” retail stores, or online but in a context outsidethe online activities, such as a credit card purchase that is performedin a way not visible to a search company that facilitates the searchactivities.

In one embodiment, the correlator (117) is to identify transactionsresulting from searches or online advertisements. For example, inresponse to a query about the user (101) from the user tracker (113),the correlator (117) identifies an offline transaction performed by theuser (101) and sends the correlation result (123) about the offlinetransaction to the user tracker (113), which allows the user tracker(113) to combine the information about the offline transaction and theonline activities to provide significant marketing advantages.

For example, a marketing department could correlate an advertisingbudget to actual sales. For example, a marketer can use the correlationresult (123) to study the effect of certain prioritization strategies,customization schemes, etc. on the impact on the actual sales. Forexample, the correlation result (123) can be used to adjust orprioritize advertisement placement on a website, a search engine, asocial networking site, an online marketplace, or the like.

In one embodiment, the profile generator (121) uses the correlationresult (123) to augment the transaction profiles (127) with dataindicating the rate of conversion from searches or advertisements topurchase transactions. In one embodiment, the correlation result (123)is used to generate predictive models to determine what a user (101) islikely to purchase when the user (101) is searching using certainkeywords or when the user (101) is presented with an advertisement oroffer. In one embodiment, the portal (143) is configured to report thecorrelation result (123) to a partner, such as a search engine, apublisher, or a merchant, to allow the partner to use the correlationresult (123) to measure the effectiveness of advertisements and/orsearch result customization, to arrange rewards, etc.

Illustratively, a search engine entity may display a search page withparticular advertisements for flat panel televisions produced bycompanies A, B, and C. The search engine entity may then compare theparticular advertisements presented to a particular consumer withtransaction data of that consumer and may determine that the consumerpurchased a flat panel television produced by Company B. The searchengine entity may then use this information and other informationderived from the behavior of other consumers to determine theeffectiveness of the advertisements provided by companies A, B, and C.The search engine entity can determine if the placement, appearance, orother characteristic of the advertisement results in actual increasedsales. Adjustments to advertisements (e.g., placement, appearance, etc.)may be made to facilitate maximum sales.

In one embodiment, the correlator (117) matches the online activitiesand the transactions based on matching the user data (125) provided bythe user tracker (113) and the records of the transactions, such astransaction data (109) or transaction records (301). In anotherembodiment, the correlator (117) matches the online activities and thetransactions based on the redemption of offers/benefits provided in theuser specific advertisement data (119).

In one embodiment, the portal (143) is configured to receive a set ofconditions and an identification of the user (101), determine whetherthere is any transaction of the user (101) that satisfies the set ofconditions, and if so, provide indications of the transactions thatsatisfy the conditions and/or certain details about the transactions,which allows the requester to correlate the transactions with certainuser activities, such as searching, web browsing, consumingadvertisements, etc.

In one embodiment, the requester may not know the account number (302)of the user (101); and the portal (143) is to map the identifierprovided in the request to the account number (302) of the user (101) toprovide the requested information. Examples of the identifier beingprovided in the request to identify the user (101) include anidentification of an iFrame of a web page visited by the user (101), abrowser cookie ID, an IP address and the day and time corresponding tothe use of the IP address, etc.

The information provided by the portal (143) can be used in pre-purchasemarketing activities, such as customizing content or offers,prioritizing content or offers, selecting content or offers, etc., basedon the spending pattern of the user (101). The content that iscustomized, prioritized, selected, or recommended may be the searchresults, blog entries, items for sale, etc.

The information provided by the portal (143) can be used inpost-purchase activities. For example, the information can be used tocorrelate an offline purchase with online activities. For example, theinformation can be used to determine purchases made in response to mediaevents, such as television programs, advertisements, news announcements,etc.

Details about profile delivery, online activity to offline purchasetracking, techniques to identify the user specific profile (131) basedon user data (125) (such as IP addresses), and targeted delivery ofadvertisement/offer/benefit in some embodiments are provided in U.S.patent application Ser. No. 12/849,789, filed Aug. 3, 2010 and entitled“Systems and Methods to Deliver Targeted Advertisements to Audience,”the disclosures of which applications are incorporated herein byreference.

Matching Advertisement & Transaction

In one embodiment, the correlator (117) is configured to receiveinformation about the user specific advertisement data (119), monitorthe transaction data (109), identify transactions that can be consideredresults of the advertisement corresponding to the user specificadvertisement data (119), and generate the correlation result (123), asillustrated in FIG. 1.

When the advertisement and the corresponding transaction both occur inan online checkout process, a website used for the online checkoutprocess can be used to correlate the transaction and the advertisement.However, the advertisement and the transaction may occur in separateprocesses and/or under control of different entities (e.g., when thepurchase is made offline at a retail store, whereas the advertisement ispresented outside the retail store). In one embodiment, the correlator(117) uses a set of correlation criteria to identify the transactionsthat can be considered as the results of the advertisements.

In one embodiment, the correlator (117) identifies the transactionslinked or correlated to the user specific advertisement data (119) basedon various criteria. For example, the user specific advertisement data(119) may include a coupon offering a benefit contingent upon a purchasemade according to the user specific advertisement data (119). The use ofthe coupon identifies the user specific advertisement data (119), andthus allows the correlator (117) to correlate the transaction with theuser specific advertisement data (119).

In one embodiment, the user specific advertisement data (119) isassociated with the identity or characteristics of the user (101), suchas global unique identifier (GUID), personal account number (PAN),alias, IP address, name or user name, geographical location orneighborhood, household, user group, and/or user data (125). Thecorrelator (117) can link or match the transactions with theadvertisements based on the identity or characteristics of the user(101) associated with the user specific advertisement data (119). Forexample, the portal (143) may receive a query identifying the user data(125) that tracks the user (101) and/or characteristics of the userspecific advertisement data (119); and the correlator (117) identifiesone or more transactions matching the user data (125) and/or thecharacteristics of the user specific advertisement data (119) togenerate the correlation result (123).

In one embodiment, the correlator (117) identifies the characteristicsof the transactions and uses the characteristics to search foradvertisements that match the transactions. Such characteristics mayinclude GUID, PAN, IP address, card number, browser cookie information,coupon, alias, etc.

In FIG. 1, the profile generator (121) uses the correlation result (123)to enhance the transaction profiles (127) generated from the profilegenerator (121). The correlation result (123) provides details onpurchases and/or indicates the effectiveness of the user specificadvertisement data (119).

In one embodiment, the correlation result (123) is used to demonstrateto the advertisers the effectiveness of the advertisements, to processincentive or rewards associated with the advertisements, to obtain atleast a portion of advertisement revenue based on the effectiveness ofthe advertisements, to improve the selection of advertisements, etc.

Coupon Matching

In one embodiment, the correlator (117) identifies a transaction that isa result of an advertisement (e.g., 119) when an offer or benefitprovided in the advertisement is redeemed via the transaction handler(103) in connection with a purchase identified in the advertisement.

For example, in one embodiment, when the offer is extended to the user(101), information about the offer can be stored in association with theaccount of the user (101) (e.g., as part of the account data (111)). Theuser (101) may visit the portal (143) of the transaction handler (103)to view the stored offer.

The offer stored in the account of the user (101) may be redeemed viathe transaction handler (103) in various ways. For example, in oneembodiment, the correlator (117) may download the offer to thetransaction terminal (105) via the transaction handler (103) when thecharacteristics of the transaction at the transaction terminal (105)match the characteristics of the offer.

After the offer is downloaded to the transaction terminal (105), thetransaction terminal (105) automatically applies the offer when thecondition of the offer is satisfied in one embodiment. Alternatively,the transaction terminal (105) allows the user (101) to selectivelyapply the offers downloaded by the correlator (117) or the transactionhandler (103). In one embodiment, the correlator (117) sends remindersto the user (101) at a separate point of interaction (107) (e.g., amobile phone) to remind the user (101) to redeem the offer. In oneembodiment, the transaction handler (103) applies the offer (e.g., viastatement credit), without having to download the offer (e.g., coupon)to the transaction terminal (105). Examples and details of redeemingoffers via statement credit are provided in U.S. patent application Ser.No. 12/566,350, filed Sep. 24, 2009 and entitled “Real-Time StatementCredits and Notifications,” the disclosure of which is herebyincorporated herein by reference.

In one embodiment, the offer is captured as an image and stored inassociation with the account of the user (101). Alternatively, the offeris captured in a text format (e.g., a code and a set of criteria),without replicating the original image of the coupon.

In one embodiment, when the coupon is redeemed, the advertisementpresenting the coupon is correlated with a transaction in which thecoupon is redeemed, and/or is determined to have resulted in atransaction. In one embodiment, the correlator (117) identifiesadvertisements that have resulted in purchases, without having toidentify the specific transactions that correspond to theadvertisements.

Details about offer redemption via the transaction handler (103) in oneembodiment are provided in U.S. patent application Ser. No. 12/849,801,filed Aug. 3, 2010 and entitled “Systems and Methods for Multi-ChannelOffer Redemption,” the disclosure of which is hereby incorporated hereinby reference.

On ATM & POS Terminal

In one example, the transaction terminal (105) is an automatic tellermachine (ATM), which is also the point of interaction (107). When theuser (101) approaches the ATM to make a transaction (e.g., to withdrawcash via a credit card or debit card), the ATM transmits accountinformation (142) to the transaction handler (103). The accountinformation (142) can also be considered as the user data (125) toselect the user specific profile (131). The user specific profile (131)can be sent to an advertisement network to query for a targetedadvertisement. After the advertisement network matches the user specificprofile (131) with user specific advertisement data (119) (e.g., atargeted advertisement), the transaction handler (103) may send theadvertisement to the ATM, together with the authorization for cashwithdrawal.

In one embodiment, the advertisement shown on the ATM includes a couponthat offers a benefit that is contingent upon the user (101) making apurchase according to the advertisement. The user (101) may view theoffer presented on a white space on the ATM screen and select to load orstore the coupon in a storage device of the transaction handler (103)under the account of the user (101). The transaction handler (103)communicates with the bank to process the cash withdrawal. After thecash withdrawal, the ATM prints the receipt, which includes aconfirmation of the coupon, or a copy of the coupon. The user (101) maythen use the coupon printed on the receipt. Alternatively, when the user(101) uses the same account to make a relevant purchase, the transactionhandler (103) may automatically apply the coupon stored under theaccount of the user (101), automatically download the coupon to therelevant transaction terminal (105), or transmit the coupon to themobile phone of the user (101) to allow the user (101) to use the couponvia a display of the coupon on the mobile phone. The user (101) mayvisit a web portal (143) of the transaction handler (103) to view thestatus of the coupons collected in the account of the user (101).

In one embodiment, the advertisement is forwarded to the ATM via thedata stream for authorization. In another embodiment, the ATM makes aseparate request to a server of the transaction handler (103) (e.g., aweb portal) to obtain the advertisement. Alternatively, or incombination, the advertisement (including the coupon) is provided to theuser (101) at separate, different points of interactions, such as via atext message to a mobile phone of the user (101), via an email, via abank statement, etc.

Details of presenting targeted advertisements on ATMs based onpurchasing preferences and location data in one embodiment are providedin U.S. patent application Ser. No. 12/266,352, filed Nov. 6, 2008 andentitled “System Including Automated Teller Machine with Data BearingMedium,” the disclosure of which is hereby incorporated herein byreference.

In another example, the transaction terminal (105) is a POS terminal atthe checkout station in a retail store (e.g., a self-service checkoutregister). When the user (101) pays for a purchase via a payment card(e.g., a credit card or a debit card), the transaction handler (103)provides a targeted advertisement having a coupon obtained from anadvertisement network. The user (101) may load the coupon into theaccount of the payment card and/or obtain a hardcopy of the coupon fromthe receipt. When the coupon is used in a transaction, the advertisementis linked to the transaction.

Details of presenting targeted advertisements during the process ofauthorizing a financial payment card transaction in one embodiment areprovided in U.S. patent application Ser. No. 11/799,549, filed May 1,2007, assigned Pub. No. 2008/0275771, and entitled “Merchant TransactionBased Advertising,” the disclosure of which is hereby incorporatedherein by reference.

In one embodiment, the user specific advertisement data (119), such asoffers or coupons, is provided to the user (101) via the transactionterminal (105) in connection with an authorization message during theauthorization of a transaction processed by the transaction handler(103). The authorization message can be used to communicate the rewardsqualified for by the user (101) in response to the current transaction,the status and/or balance of rewards in a loyalty program, etc. Examplesand details related to the authorization process in one embodiment areprovided in U.S. patent application Ser. No. 11/266,766, filed Nov. 2,2005, assigned Pub. No. 2007/0100691, and entitled “Method and Systemfor Conducting Promotional Programs,” the disclosure of which is herebyincorporated herein by reference.

In one embodiment, when the user (101) is conducting a transaction witha first merchant via the transaction handler (103), the transactionhandler (103) may determine whether the characteristics of thetransaction satisfy the conditions specified for an announcement, suchas an advertisement, offer or coupon, from a second merchant. If theconditions are satisfied, the transaction handler (103) provides theannouncement to the user (101). In one embodiment, the transactionhandler (103) may auction the opportunity to provide the announcementsto a set of merchants. Examples and details related to the delivery ofsuch announcements in one embodiment are provided in U.S. patentapplication Ser. No. 12/428,241, filed Apr. 22, 2009 and entitled“Targeting Merchant Announcements Triggered by Consumer ActivityRelative to a Surrogate Merchant,” the disclosure of which is herebyincorporated herein by reference.

Details about delivering advertisements at a point of interaction thatis associated with user transaction interactions in one embodiment areprovided in U.S. patent application Ser. No. 12/849,791, filed Aug. 3,2010 and entitled “Systems and Methods to Deliver TargetedAdvertisements to Audience,” the disclosure of which is herebyincorporated herein by reference.

On Third Party Site

In a further example, the user (101) may visit a third party website,which is the point of interaction (107) in FIG. 1. The third partywebsite may be a web search engine, a news website, a blog, a socialnetwork site, etc. The behavior of the user (101) at the third partywebsite may be tracked via a browser cookie, which uses a storage spaceof the browser to store information about the user (101) at the thirdparty website. Alternatively, or in combination, the third party websiteuses the server logs to track the activities of the user (101). In oneembodiment, the third party website may allow an advertisement networkto present advertisements on portions of the web pages. Theadvertisement network tracks the user's behavior using its server logsand/or browser cookies. For example, the advertisement network may use abrowser cookie to identify a particular user across multiple websites.Based on the referral uniform resource locators (URL) that cause theadvertisement network to load advertisements in various web pages, theadvertisement network can determine the online behavior of the user(101) via analyzing the web pages that the user (101) has visited. Basedon the tracked online activities of the user (101), the user data (125)that characterizes the user (101) can be formed to query the profilerselector (129) for a user specific profile (131).

In one embodiment, the cookie identity of the user (101) as trackedusing the cookie can be correlated to an account of the user (101), thefamily of the user (101), the company of the user (101), or other groupsthat include the user (101) as a member. Thus, the cookie identity canbe used as the user data (125) to obtain the user specific profile(131). For example, when the user (101) makes an online purchase from aweb page that contains an advertisement that is tracked with the cookieidentity, the cookie identity can be correlated to the onlinetransaction and thus to the account of the user (101). For example, whenthe user (101) visits a web page after authentication of the user (101),and the web page includes an advertisement from the advertisementnetwork, the cookie identity can be correlated to the authenticatedidentity of the user (101). For example, when the user (101) signs in toa web portal (e.g., 143) of the transaction handler (103) to access theaccount of the user (101), the cookie identity used by the advertisementnetwork on the web portal (e.g., 143) can be correlated to the accountof the user (101).

Other online tracking techniques can also be used to correlate thecookie identity of the user (101) with an identifier of the user (101)known by the profile selector (129), such as a GUID, PAN, accountnumber, customer number, social security number, etc. Subsequently, thecookie identity can be used to select the user specific profile (131).

Multiple Communications

In one embodiment, the entity operating the transaction handler (103)may provide intelligence for providing multiple communications regardingan advertisement. The multiple communications may be directed to two ormore points of interaction with the user (101).

For example, after the user (101) is provided with an advertisement viathe transaction terminal (105), reminders or revisions to theadvertisements can be sent to the user (101) via a separate point ofinteraction (107), such as a mobile phone, email, text message, etc. Forexample, the advertisement may include a coupon to offer the user (101)a benefit contingent upon a purchase. If the correlator (117) determinesthat the coupon has not been redeemed, the correlator (117) may send amessage to the mobile phone of the user (101) to remind the user (101)about the offer, and/or revise the offer.

Examples of multiple communications related to an offer in oneembodiment are provided in U.S. patent application Ser. No. 12/510,167,filed Jul. 27, 2009 and entitled “Successive Offer Communications withan Offer Recipient,” the disclosure of which is hereby incorporatedherein by reference.

Auction Engine

In one embodiment, the transaction handler (103) provides a portal(e.g., 143) to allow various clients to place bids according to clusters(e.g., to target entities in the clusters for marketing, monitoring,researching, etc.)

For example, cardholders may register in a program to receive offers,such as promotions, discounts, sweepstakes, reward points, direct mailcoupons, email coupons, etc. The cardholders may register with issuers,or with the portal (143) of the transaction handler (103). Based on thetransaction data (109) or transaction records (301) and/or theregistration data, the profile generator (121) is to identify theclusters of cardholders and the values representing the affinity of thecardholders to the clusters. Various entities may place bids accordingto the clusters and/or the values to gain access to the cardholders,such as the user (101). For example, an issuer may bid on access tooffers; an acquirer and/or a merchant may bid on customer segments. Anauction engine receives the bids and awards segments and offers based onthe received bids. Thus, customers can get great deals; and merchantscan get customer traffic and thus sales.

Some techniques to identify a segment of users (101) for marketing areprovided in U.S. patent application Ser. No. 12/288,490, filed Oct. 20,2008, assigned Pub. No. 2009/0222323, and entitled “OpportunitySegmentation,” U.S. patent application Ser. No. 12/108,342, filed Apr.23, 2008, assigned Pub. No. 2009/0271305, and entitled “PaymentPortfolio Optimization,” and U.S. patent application Ser. No.12/108,354, filed Apr. 23, 2008, assigned Pub. No. 2009/0271327, andentitled “Payment Portfolio Optimization,” the disclosures of whichapplications are hereby incorporated herein by reference.

Social Network Validation

In one embodiment, the transaction data (109) is combined with socialnetwork data and/or search engine data to provide benefits (e.g.,coupons) to a consumer. For example, a data exchange apparatus mayidentify cluster data based upon consumer search engine data, socialnetwork data, and payment transaction data to identify like groups ofindividuals who would respond favorably to particular types of benefitssuch as coupons and statement credits. Advertisement campaigns may beformulated to target the cluster of consumers or cardholders.

In one embodiment, search engine data is combined with social networkdata and/or the transaction data (109) to evaluate the effectiveness ofthe advertisements and/or conversion pattern of the advertisements. Forexample, after a search engine displays advertisements about flat paneltelevisions to a consumer, a social network that is used by a consumermay provide information about a related purchase made by the consumer.For example, the blog of the consumer, and/or the transaction data(109), may indicate that the flat panel television purchased by theconsumer is from company B. Thus, the search engine data, the socialnetwork data and/or the transaction data (109) can be combined tocorrelate advertisements to purchases resulting from the advertisementsand to determine the conversion pattern of the advertisement presentedto the consumer. Adjustments to advertisements (e.g., placement,appearance, etc.) can be made to improve the effectiveness of theadvertisements and thus increase sales.

Loyalty Program

In one embodiment, the transaction handler (103) uses the account data(111) to store information for third party loyalty programs. Thetransaction handler (103) processes payment transactions made viafinancial transaction cards, such as credit cards, debit cards, bankingcards, etc.; and the financial transaction cards can be used as loyaltycards for the respective third party loyalty programs. Since the thirdparty loyalty programs are hosted on the transaction handler (103), theconsumers do not have to carry multiple, separate loyalty cards (e.g.,one for each merchant that offers a loyalty program); and the merchantsdo not have to incur a large setup and investment fee to establish theloyalty program. The loyalty programs hosted on the transaction handler(103) can provide flexible awards for consumers, retailers,manufacturers, issuers, and other types of business entities involved inthe loyalty programs. The integration of the loyalty programs into theaccounts of the customers on the transaction handler (103) allows newofferings, such as merchant cross-offerings or bundling of loyaltyofferings.

In one embodiment, an entity operating the transaction handler (103)hosts loyalty programs for third parties using the account data (111) ofthe users (e.g., 101). A third party, such as a merchant, retailer,manufacturer, issuer or other entity that is interested in promotingcertain activities and/or behaviors, may offer loyalty rewards onexisting accounts of consumers. The incentives delivered by the loyaltyprograms can drive behavior changes without the hassle of loyalty cardcreation. In one embodiment, the loyalty programs hosted via theaccounts of the users (e.g., 101) of the transaction handler (103) allowthe consumers to carry fewer cards and may provide more data to themerchants than traditional loyalty programs.

The loyalty programs integrated with the accounts of the users (e.g.,101) of the transaction handler (103) can provide tools to enable nimbleprograms that are better aligned for driving changes in consumerbehaviors across transaction channels (e.g., online, offline, via mobiledevices). The loyalty programs can be ongoing programs that accumulatebenefits for customers (e.g., points, miles, cash back), and/or programsthat provide one time benefits or limited time benefits (e.g., rewards,discounts, incentives).

FIG. 8 shows the structure of account data (111) for providing loyaltyprograms according to one embodiment. In FIG. 8, data related to a thirdparty loyalty program may include an identifier of the loyalty benefitofferor (183) that is linked to a set of loyalty program rules (185) andthe loyalty record (187) for the loyalty program activities of theaccount identifier (181). In one embodiment, at least part of the datarelated to the third party loyalty program is stored under the accountidentifier (181) of the user (101), such as the loyalty record (187).

FIG. 8 illustrates the data related to one third party loyalty programof a loyalty benefit offeror (183). In one embodiment, the accountidentifier (181) may be linked to multiple loyalty benefit offerors(e.g., 183), corresponding to different third party loyalty programs.

In one embodiment, a third party loyalty program of the loyalty benefitofferor (183) provides the user (101), identified by the accountidentifier (181), with benefits, such as discounts, rewards, incentives,cash back, gifts, coupons, and/or privileges.

In one embodiment, the association between the account identifier (181)and the loyalty benefit offeror (183) in the account data (111)indicates that the user (101) having the account identifier (181) is amember of the loyalty program. Thus, the user (101) may use the accountidentifier (181) to access privileges afforded to the members of theloyalty programs, such as rights to access a member only area, facility,store, product or service, discounts extended only to members, oropportunities to participate in certain events, buy certain items, orreceive certain services reserved for members.

In one embodiment, it is not necessary to make a purchase to use theprivileges. The user (101) may enjoy the privileges based on the statusof being a member of the loyalty program. The user (101) may use theaccount identifier (181) to show the status of being a member of theloyalty program.

For example, the user (101) may provide the account identifier (181)(e.g., the account number of a credit card) to the transaction terminal(105) to initiate an authorization process for a special transactionwhich is designed to check the member status of the user (101), in amanner similar to using the account identifier (181) to initiate anauthorization process for a payment transaction. The special transactionis designed to verify the member status of the user (101) via checkingwhether the account data (111) is associated with the loyalty benefitofferor (183). If the account identifier (181) is associated with thecorresponding loyalty benefit offeror (183), the transaction handler(103) provides an approval indication in the authorization process toindicate that the user (101) is a member of the loyalty program. Theapproval indication can be used as a form of identification to allow theuser (101) to access member privileges, such as access to services,products, opportunities, facilities, discounts, permissions, etc., whichare reserved for members.

In one embodiment, when the account identifier (181) is used to identifythe user (101) as a member to access member privileges, the transactionhandler (103) stores information about the access of the correspondingmember privilege in loyalty record (187). The profile generator (121)may use the information accumulated in the loyalty record (187) toenhance transaction profiles (127) and provide the user (101) withpersonalized/targeted advertisements, with or without further offers ofbenefit (e.g., discounts, incentives, rebates, cash back, rewards,etc.).

In one embodiment, the association of the account identifier (181) andthe loyalty benefit offeror (183) also allows the loyalty benefitofferor (183) to access at least a portion of the account data (111)relevant to the loyalty program, such as the loyalty record (187) andcertain information about the user (101), such as name, address, andother demographic data.

In one embodiment, the loyalty program allows the user (101) toaccumulate benefits according to loyalty program rules (185), such asreward points, cash back, levels of discounts, etc. For example, theuser (101) may accumulate reward points for transactions that satisfythe loyalty program rules (185); and the user (101) may redeem thereward points for cash, gifts, discounts, etc. In one embodiment, theloyalty record (187) stores the accumulated benefits; and thetransaction handler (103) updates the loyalty record (187) associatedwith the loyalty benefit offeror (183) and the account identifier (181),when events that satisfy the loyalty program rules (185) occur.

In one embodiment, the accumulated benefits as indicated in the loyaltyrecord (187) can be redeemed when the account identifier (181) is usedto perform a payment transaction, when the payment transaction satisfiesthe loyalty program rules (185). For example, the user (101) may redeema number of points to offset or reduce an amount of the purchase price.

In one embodiment, when the user (101) uses the account identifier (181)to make purchases as a member, the merchant may further provideinformation about the purchases; and the transaction handler (103) canstore the information about the purchases as part of the loyalty record(187). The information about the purchases may identify specific itemsor services purchased by the member. For example, the merchant mayprovide the transaction handler (103) with purchase details atstock-keeping unit (SKU) level, which are then stored as part of theloyalty record (187). The loyalty benefit offeror (183) may use thepurchase details to study the purchase behavior of the user (101); andthe profile generator (121) may use the SKU level purchase details toenhance the transaction profiles (127).

In one embodiment, the SKU level purchase details are requested from themerchants or retailers via authorization responses (e.g., as illustratedin FIG. 9), when the account (146) of the user (101) is enrolled in aloyalty program that allows the transaction handler (103) (and/or theissuer processor (145)) to collect the purchase details.

In one embodiment, the profile generator (121) may generate transactionprofiles (127) based on the loyalty record (187) and provide thetransaction profiles (127) to the loyalty benefit offeror (183) (orother entities when permitted).

In one embodiment, the loyalty benefit offeror (183) may use thetransaction profiles (e.g., 127 or 131) to select candidates formembership offering. For example, the loyalty program rules (185) mayinclude one or more criteria that can be used to identify whichcustomers are eligible for the loyalty program. The transaction handler(103) may be configured to automatically provide the qualified customerswith an offer of membership in the loyalty program when thecorresponding customers are performing transactions via the transactionhandler (103) and/or via points of interaction (107) accessible to theentity operating the transaction handler (103), such as ATMs, mobilephones, receipts, statements, websites, etc. The user (101) may acceptthe membership offer via responding to the advertisement. For example,the user (101) may load the membership into the account in the same wayas loading a coupon into the account of the user (101).

In one embodiment, the membership offer is provided as a coupon or isassociated with another offer of benefits, such as a discount, reward,etc. When the coupon or benefit is redeemed via the transaction handler(103), the account data (111) is updated to enroll the user (101) intothe corresponding loyalty program.

In one embodiment, a merchant may enroll a user (101) into a loyaltyprogram when the user (101) is making a purchase at the transactionterminal (105) of the merchant.

For example, when the user (101) is making a transaction at an ATM,performing a self-assisted check out on a POS terminal, or making apurchase transaction on a mobile phone or a computer, the user (101) maybe prompted to join a loyalty program, while the transaction is beingauthorized by the transaction handler (103). If the user (101) acceptsthe membership offer, the account data (111) is updated to have theaccount identifier (181) associated with the loyalty benefit offeror(183).

In one embodiment, the user (101) may be automatically enrolled in theloyalty program, when the profile of the user (101) satisfies a set ofconditions specified in the loyalty program rules (185). The user (101)may opt out of the loyalty program.

In one embodiment, the loyalty benefit offeror (183) may personalizeand/or target loyalty benefits based on the transaction profile (131)specific to or linked to the user (101). For example, the loyaltyprogram rules (185) may use the user specific profile (131) to selectgifts, rewards, or incentives for the user (101) (e.g., to redeembenefits, such as reward points, accumulated in the loyalty record(187)). The user specific profile (131) may be enhanced using theloyalty record (187), or generated based on the loyalty record (187).For example, the profile generator (121) may use a subset of transactiondata (109) associated with the loyalty record (187) to generate the userspecific profile (131), or provide more weight to the subset of thetransaction data (109) associated with the loyalty record (187) whilealso using other portions of the transaction data (109) in deriving theuser specific profile (131).

In one embodiment, the loyalty program may involve different entities.For example, a first merchant may offer rewards as discounts, or giftsfrom a second merchant that has a business relationship with the firstmerchant. For example, an entity may allow a user (101) to accumulateloyalty benefits (e.g., reward points) via purchase transactions at agroup of different merchants. For example, a group of merchants mayjointly offer a loyalty program, in which loyalty benefits (e.g., rewardpoints) can be accumulated from purchases at any of the merchants in thegroup and redeemable in purchases at any of the merchants.

In one embodiment, the information identifying the user (101) as amember of a loyalty program is stored on a server connected to thetransaction handler (103). Alternatively or in combination, theinformation identifying the user (101) as a member of a loyalty programcan also be stored in a financial transaction card (e.g., in the chip,or in the magnetic strip).

In one embodiment, loyalty program offerors (e.g., merchants,manufactures, issuers, retailers, clubs, organizations, etc.) cancompete with each other in making loyalty program related offers. Forexample, loyalty program offerors may place bids on loyalty programrelated offers; and the advertisement selector (133) (e.g., under thecontrol of the entity operating the transaction handler (103), or adifferent entity) may prioritize the offers based on the bids. When theoffers are accepted or redeemed by the user (101), the loyalty programofferors pay fees according to the corresponding bids. In oneembodiment, the loyalty program offerors may place an auto bid ormaximum bid, which specifies the upper limit of a bid; and the actualbid is determined to be the lowest possible bid that is larger than thebids of the competitors, without exceeding the upper limit.

In one embodiment, the offers are provided to the user (101) in responseto the user (101) being identified by the user data (125). If the userspecific profile (131) satisfies the conditions specified in the loyaltyprogram rules (185), the offer from the loyalty benefit offeror (183)can be presented to the user (101). When there are multiple offers fromdifferent offerors, the offers can be prioritized according to the bids.

In one embodiment, the offerors can place bids based on thecharacteristics that can be used as the user data (125) to select theuser specific profile (131). In another embodiment, the bids can beplaced on a set of transaction profiles (127).

In one embodiment, the loyalty program based offers are provided to theuser (101) just in time when the user (101) can accept and redeem theoffers. For example, when the user (101) is making a payment for apurchase from a merchant, an offer to enroll in a loyalty programoffered by the merchant or related offerors can be presented to the user(101). If the user (101) accepts the offer, the user (101) is entitledto receive member discounts for the purchase.

For example, when the user (101) is making a payment for a purchase froma merchant, a reward offer can be provided to the user (101) based onloyalty program rules (185) and the loyalty record (187) associated withthe account identifier (181) of the user (101)(e.g., the reward pointsaccumulated in a loyalty program). Thus, the user effort for redeemingthe reward points can be reduced; and the user experience can beimproved.

In one embodiment, a method to provide loyalty programs includes the useof a computing apparatus of a transaction handler (103). The computingapparatus processes a plurality of payment card transactions. After thecomputing apparatus receives a request to track transactions for aloyalty program, such as the loyalty program rules (185), the computingapparatus stores and updates loyalty program information in response totransactions occurring in the loyalty program. The computing apparatusprovides to a customer (e.g., 101) an offer of a benefit when thecustomer satisfies a condition defined in the loyalty program, such asthe loyalty program rules (185).

Examples of loyalty programs offered through collaboration betweencollaborative constituents in a payment processing system, including thetransaction handler (103) in one embodiment are provided in U.S. patentapplication Ser. No. 11/767,202, filed Jun. 22, 2007, assigned Pub. No.2008/0059302, and entitled “Loyalty Program Service,” U.S. patentapplication Ser. No. 11/848,112, filed Aug. 30, 2007, assigned Pub. No.2008/0059306, and entitled “Loyalty Program Incentive Determination,”and U.S. patent application Ser. No. 11/848,179, filed Aug. 30, 2007,assigned Pub. No. 2008/0059307, and entitled “Loyalty Program ParameterCollaboration,” the disclosures of which applications are herebyincorporated herein by reference.

Examples of processing the redemption of accumulated loyalty benefitsvia the transaction handler (103) in one embodiment are provided in U.S.patent application Ser. No. 11/835,100, filed Aug. 7, 2007, assignedPub. No. 2008/0059303, and entitled “Transaction Evaluation forProviding Rewards,” the disclosure of which is hereby incorporatedherein by reference.

In one embodiment, the incentive, reward, or benefit provided in theloyalty program is based on the presence of correlated relatedtransactions. For example, in one embodiment, an incentive is providedif a financial payment card is used in a reservation system to make areservation and the financial payment card is subsequently used to payfor the reserved good or service. Further details and examples of oneembodiment are provided in U.S. patent application Ser. No. 11/945,907,filed Nov. 27, 2007, assigned Pub. No. 2008/0071587, and entitled“Incentive Wireless Communication Reservation,” the disclosure of whichis hereby incorporated herein by reference.

In one embodiment, the transaction handler (103) provides centralizedloyalty program management, reporting and membership services. In oneembodiment, membership data is downloaded from the transaction handler(103) to acceptance point devices, such as the transaction terminal(105). In one embodiment, loyalty transactions are reported from theacceptance point devices to the transaction handler (103); and the dataindicating the loyalty points, rewards, benefits, etc. are stored on theaccount identification device (141). Further details and examples of oneembodiment are provided in U.S. patent application Ser. No. 10/401,504,filed Mar. 27, 2003, assigned Pub. No. 2004/0054581, and entitled“Network Centric Loyalty System,” the disclosure of which is herebyincorporated herein by reference.

In one embodiment, the portal (143) of the transaction handler (103) isused to manage reward or loyalty programs for entities such as issuers,merchants, etc. The cardholders, such as the user (101), are rewardedwith offers/benefits from merchants. The portal (143) and/or thetransaction handler (103) track the transaction records for themerchants for the reward or loyalty programs. Further details andexamples of one embodiment are provided in U.S. patent application Ser.No. 11/688,423, filed Mar. 20, 2007, assigned Pub. No. 2008/0195473, andentitled “Reward Program Manager,” the disclosure of which is herebyincorporated herein by reference.

In one embodiment, a loyalty program includes multiple entitiesproviding access to detailed transaction data, which allows theflexibility for the customization of the loyalty program. For example,issuers or merchants may sponsor the loyalty program to provide rewards;and the portal (143) and/or the transaction handler (103) stores theloyalty currency in the data warehouse (149). Further details andexamples of one embodiment are provided in U.S. patent application Ser.No. 12/177,530, filed Jul. 22, 2008, assigned Pub. No. 2009/0030793, andentitled “Multi-Vender Multi-Loyalty Currency Program,” the disclosureof which is hereby incorporated herein by reference.

In one embodiment, an incentive program is created on the portal (143)of the transaction handler (103). The portal (143) collects offers froma plurality of merchants and stores the offers in the data warehouse(149). The offers may have associated criteria for their distributions.The portal (143) and/or the transaction handler (103) may recommendoffers based on the transaction data (109). In one embodiment, thetransaction handler (103) automatically applies the benefits of theoffers during the processing of the transactions when the transactionssatisfy the conditions associated with the offers. In one embodiment,the transaction handler (103) communicates with transaction terminals(e.g., 105) to set up, customize, and/or update offers based on marketfocus, product categories, service categories, targeted consumerdemographics, etc. Further details and examples of one embodiment areprovided in U.S. patent application Ser. No. 12/413,097, filed Mar. 27,2009, assigned Pub. No. 2010-0049620 and entitled “Merchant DeviceSupport of an Integrated Offer Network,” the disclosure of which ishereby incorporated herein by reference.

In one embodiment, the transaction handler (103) is configured toprovide offers from merchants to the user (101) via the payment system,making accessing and redeeming the offers convenient for the user (101).The offers may be triggered by and/or tailored to a previoustransaction, and may be valid only for a limited period of time startingfrom the date of the previous transaction. If the transaction handler(103) determines that a subsequent transaction processed by thetransaction handler (103) meets the conditions for the redemption of anoffer, the transaction handler (103) may credit the consumer account(146) for the redemption of the offer and/or provide a notificationmessage to the user (101). Further details and examples of oneembodiment are provided in U.S. patent application Ser. No. 12/566,350,filed Sep. 24, 2009 and entitled “Real-Time Statement Credits andNotifications,” the disclosure of which is hereby incorporated herein byreference.

Details on loyalty programs in one embodiment are provided in U.S.patent application Ser. No. 12/896,632, filed Oct. 1, 2010 and entitled“Systems and Methods to Provide Loyalty Programs,” the disclosure ofwhich is hereby incorporated herein by reference.

SKU

In one embodiment, merchants generate stock-keeping unit (SKU) or otherspecific information that identifies the particular goods and servicespurchased by the user (101) or customer. The SKU information may beprovided to the operator of the transaction handler (103) that processedthe purchases. The operator of the transaction handler (103) may storethe SKU information as part of transaction data (109), and reflect theSKU information for a particular transaction in a transaction profile(127 or 131) associated with the person involved in the transaction.

When a user (101) shops at a traditional retail store or browses awebsite of an online merchant, an SKU-level profile associatedspecifically with the user (101) may be provided to select anadvertisement appropriately targeted to the user (101) (e.g., via mobilephones, POS terminals, web browsers, etc.). The SKU-level profile forthe user (101) may include an identification of the goods and serviceshistorically purchased by the user (101). In addition, the SKU-levelprofile for the user (101) may identify goods and services that the user(101) may purchase in the future. The identification may be based onhistorical purchases reflected in SKU-level profiles of otherindividuals or groups that are determined to be similar to the user(101). Accordingly, the return on investment for advertisers andmerchants can be greatly improved.

In one embodiment, the user specific profile (131) is an aggregatedspending profile (341) that is generated using the SKU-levelinformation. For example, in one embodiment, the factor values (344)correspond to factor definitions (331) that are generated based onaggregating spending in different categories of products and/orservices. A typical merchant offers products and/or services in manydifferent categories.

In one embodiment, the user (101) may enter into transactions withvarious online and “brick and mortar” merchants. The transactions mayinvolve the purchase of various items of goods and services. The goodsand services may be identified by SKU numbers or other information thatspecifically identifies the goods and services purchased by the user(101).

In one embodiment, the merchant may provide the SKU informationregarding the goods and services purchased by the user (101) (e.g.,purchase details at SKU level) to the operator of the transactionhandler (103). In one embodiment, the SKU information may be provided tothe operator of the transaction handler (103) in connection with aloyalty program, as described in more detail below. The SKU informationmay be stored as part of the transaction data (109) and associated withthe user (101). In one embodiment, the SKU information for itemspurchased in transactions facilitated by the operator of the transactionhandler (103) may be stored as transaction data (109) and associatedwith its associated purchaser.

In one embodiment, the SKU level purchase details are requested from themerchants or retailers via authorization responses (e.g., as illustratedin FIG. 9), when the account (146) of the user (101) is enrolled in aprogram that allows the transaction handler (103) (and/or the issuerprocessor (145)) to collect the purchase details.

In one embodiment, based on the SKU information and perhaps othertransaction data, the profile generator (121) may create an SKU-leveltransaction profile for the user (101). In one embodiment, based on theSKU information associated with the transactions for each personentering into transactions with the operator of the transaction handler(103), the profile generator (121) may create an SKU-level transactionprofile for each person.

In one embodiment, the SKU information associated with a group ofpurchasers may be aggregated to create an SKU-level transaction profilethat is descriptive of the group. The group may be defined based on oneor a variety of considerations. For example, the group may be defined bycommon demographic features of its members. As another example, thegroup may be defined by common purchasing patters of its members.

In one embodiment, the user (101) may later consider the purchase ofadditional goods and services. The user (101) may shop at a traditionalretailer or an online retailer. With respect to an online retailer, forexample, the user (101) may browse the website of an online retailer,publisher, or merchant. The user (101) may be associated with a browsercookie to, for example, identify the user (101) and track the browsingbehavior of the user (101).

In one embodiment, the retailer may provide the browser cookieassociated with the user (101) to the operator of the transactionhandler (103). Based on the browser cookie, the operator of thetransaction handler (103) may associate the browser cookie with apersonal account number of the user (101). The association may beperformed by the operator of the transaction handler (103) or anotherentity in a variety of manners such as, for example, using a look uptable.

Based on the personal account number, the profile selector (129) mayselect a user specific profile (131) that constitutes the SKU-levelprofile associated specifically with the user (101). The SKU-levelprofile may reflect the individual, prior purchases of the user (101)specifically, and/or the types of goods and services that the user (101)has purchased.

The SKU-level profile for the user (101) may also includeidentifications of goods and services the user (101) may purchase in thefuture. In one embodiment, the identifications may be used for theselection of advertisements for goods and services that may be ofinterest to the user (101). In one embodiment, the identifications forthe user (101) may be based on the SKU-level information associated withhistorical purchases of the user (101). In one embodiment, theidentifications for the user (101) may be additionally or alternativelybased on transaction profiles associated with others. Therecommendations may be determined by predictive association and otheranalytical techniques.

For example, the identifications for the user (101) may be based on thetransaction profile of another person. The profile selector (129) mayapply predetermined criteria to identify another person who, to apredetermined degree, is deemed sufficiently similar to the user (101).The identification of the other person may be based on a variety offactors including, for example, demographic similarity and/or purchasingpattern similarity between the user (101) and the other person. As oneexample, the common purchase of identical items or related items by theuser (101) and the other person may result in an association between theuser (101) and the other person, and a resulting determination that theuser (101) and the other person are similar. Once the other person isidentified, the transaction profile constituting the SKU-level profilefor the other person may be analyzed. Through predictive association andother modeling and analytical techniques, the historical purchasesreflected in the SKU-level profile for the other person may be employedto predict the future purchases of the user (101).

As another example, the identifications of the user (101) may be basedon the transaction profiles of a group of persons. The profile selector(129) may apply predetermined criteria to identify a multitude ofpersons who, to a predetermined degree, are deemed sufficiently similarto the user (101). The identification of the other persons may be basedon a variety of factors including, for example, demographic similarityand/or purchasing pattern similarity between the user (101) and theother persons. Once the group constituting the other persons isidentified, the transaction profile constituting the SKU-level profilefor the group may be analyzed. Through predictive association and othermodeling and analytical techniques, the historical purchases reflectedin the SKU-level profile for the group may be employed to predict thefuture purchases of the user (101).

The SKU-level profile of the user (101) may be provided to select anadvertisement that is appropriately targeted. Because the SKU-levelprofile of the user (101) may include identifications of the goods andservices that the user (101) may be likely to buy, advertisementscorresponding to the identified goods and services may be presented tothe user (101). In this way, targeted advertising for the user (101) maybe optimized. Further, advertisers and publishers of advertisements mayimprove their return on investment, and may improve their ability tocross-sell goods and services.

In one embodiment, SKU-level profiles of others who are identified to besimilar to the user (101) may be used to identify a user (101) who mayexhibit a high propensity to purchase goods and services. For example,if the SKU-level profiles of others reflect a quantity or frequency ofpurchase that is determined to satisfy a threshold, then the user (101)may also be classified or predicted to exhibit a high propensity topurchase. Accordingly, the type and frequency of advertisements thataccount for such propensity may be appropriately tailored for the user(101).

In one embodiment, the SKU-level profile of the user (101) may reflecttransactions with a particular merchant or merchants. The SKU-levelprofile of the user (101) may be provided to a business that isconsidered a peer with or similar to the particular merchant ormerchants. For example, a merchant may be considered a peer of thebusiness because the merchant offers goods and services that are similarto or related to those of the business. The SKU-level profile reflectingtransactions with peer merchants may be used by the business to betterpredict the purchasing behavior of the user (101) and to optimize thepresentation of targeted advertisements to the user (101).

Details on SKU-level profile in one embodiment are provided in U.S.patent application Ser. No. 12/899,144, filed Oct. 6, 2010 and entitled“Systems and Methods for Advertising Services Based on an SKU-LevelProfile,” the disclosure of which is hereby incorporated herein byreference.

Purchase Details

In one embodiment, the transaction handler (103) is configured toselectively request purchase details via authorization responses. Whenthe transaction handler (103) (and/or the issuer processor (145)) needspurchase details, such as identification of specific items purchasedand/or their prices, the authorization responses transmitted from thetransaction handler (103) is to include an indicator to request for thepurchase details for the transaction that is being authorized. Themerchants are to determine whether or not to submit purchase detailsbased on whether or not there is a demand indicated in the authorizationresponses from the transaction handler (103).

For example, in one embodiment, the transaction handler (103) isconfigured for the redemption of manufacturer coupons via statementcredits. Manufacturers may provide users (e.g., 101) with promotionaloffers, such as coupons for rebate, discounts, cash back, reward points,gifts, etc. The offers can be provided to users (e.g., 101) via variouschannels, such as websites, newspapers, direct mail, targetedadvertisements (e.g., 119), loyalty programs, etc.

In one embodiment, when the user (101) has one or more offers pendingunder the consumer account (146) and uses the consumer account (146) topay for purchases made from a retailer that supports the redemption ofthe offers, the transaction handler (103) is to use authorizationresponses to request purchase details, match offer details against theitems shown to be purchased in the purchase details to identify aredeemable offer, and manage the funding for the fulfillment of theredeemable offer between the user (101) and the manufacturer that fundedthe corresponding offer. In one embodiment, the request for purchasedetails is provided in real-time with the authorization message; and theexchange of the purchase details and matching may occur real-timeoutside the authorization process, or at the end of the day via a batchfile for multiple transactions.

In one embodiment, the offers are associated with the consumer account(146) of the user (101) to automate the processing of the redemption ofthe offers. If the user (101) makes a payment for a purchase using theconsumer account (146) of the user (101), the transaction handler (103)(and/or the issuer processor (145)) processes the payment transactionand automatically identifies the offers that are qualified forredemption in view of the purchase and provides the benefit of thequalified offers to the user (101). In one embodiment, the transactionhandler (103) (or the issuer processor (145)) is to detect theapplicable offer for redemption and provide the benefit of the redeemedoffer via statement credits, without having to request the user (101) toperform additional tasks.

In one embodiment, once the user (101) makes the required purchaseaccording to the requirement of the offer using the consumer account(146), the benefit of the offer is fulfilled via the transaction handler(103) (or the issuer processor (145)) without the user (101) having todo anything special at and/or after the time of checkout, other thanpaying with the consumer account (146) of the user (101), such as acredit card account, a debit card account, a loyalty card account, aprivate label card account, a coupon card account, or a prepaid cardaccount that is enrolled in the program for the automation of offerredemption.

In one embodiment, the redemption of an offer (e.g., a manufacturercoupon) requires the purchase of a specific product or service. The user(101) is eligible for the benefit of the offer after the purchase of thespecific product or service is verified. In one embodiment, thetransaction handler (103) (or the issuer processor (145)) dynamicallyrequests the purchase details via authorization response to determinethe eligibility of a purchase for the redemption of such an offer.

In one embodiment, the methods to request purchase details on demand via(or in connection with) the authorization process are used in othersituations where the transaction level data is needed on a case-by-casebasis as determined by the transaction handler (103).

For example, in one embodiment, the transaction handler (103) and/or theissuer processor (145) determines that the user (101) has signed up toreceive purchase item detail electronically, the transaction handler(103) and/or the issuer processor (145) can make the request on demand;and the purchase details can be stored and later downloaded into apersonal finance software application or a business accounting softwareapplication.

For example, in one embodiment, the transaction handler (103) and/or theissuer processor (145) determines that the user (101) has signed up toautomate the process of reimbursements of health care items qualifiedunder certain health care accounts, such as a health savings account(HSA), a flexible spending arrangement (FSA), etc. In response to such adetermination, the transaction handler (103) and/or the issuer processor(145) requests the purchase details to automatically identify qualifiedhealth care item purchases, capture and reporting evidences showing thequalification, bookkeeping the receipts or equivalent information forsatisfy rules, regulations and laws reporting purposes (e.g., asrequired by Internal Revenue Service), and/or settle the reimbursementof the funds with the respective health care accounts.

FIG. 9 shows a system to obtain purchase details according to oneembodiment. In FIG. 9, when the user (101) uses the consumer account(146) to make a payment for a purchase, the transaction terminal (105)of the merchant or retailer sends an authorization request (168) to thetransaction handler (103). In response, an authorization response (138)is transmitted from the transaction handler (103) to the transactionterminal (105) to inform the merchant or retailer of the decision toapprove or reject the payment request, as decided by the issuerprocessor (145) and/or the transaction handler (103). The authorizationresponse (138) typically includes an authorization code (137) toidentify the transaction and/or to signal that the transaction isapproved.

In one embodiment, when the transaction is approved and there is a needfor purchase details (169), the transaction handler (103) (or the issuerprocessor (145)) is to provide an indicator of the request (139) forpurchase details in the authorization response (138). The optionalrequest (139) allows the transaction handler (103) (and/or the issuerprocessor (145)) to request purchase details (169) from the merchant orretailer on demand. When the request (139) for purchase details ispresent in the authorization response (138), the transaction terminal(105) is to provide the purchase details (169) associated with thepayment transaction to the transaction handler (103) directly orindirectly via the portal (143). When the request (139) is absent fromthe authorization response (138), the transaction terminal (105) doesnot have to provide the purchase details (169) for the paymenttransaction.

In one embodiment, when the transaction is approved but there is no needfor purchase details (169), the indicator for the request (139) forpurchase details is not set in the authorization response (138).

In one embodiment, prior to transmitting the authorization response(138), the transaction handler (103) (and/or the issuer processor (145))determines whether there is a need for transaction details. In oneembodiment, when there is no need for the purchase details (169) for apayment transaction, the request (139) for purchase details (169) is notprovided in the authorization response (138) for the paymenttransaction. When there is a need for the purchase details (169) for apayment transaction, the request (139) for purchase details is providedin the authorization response (138) for the payment transaction. Themerchants or retailers do not have to send detailed purchase data to thetransaction handler (103) when the authorization response message doesnot explicitly request detailed purchase data.

Thus, the transaction handler (103) (or the issuer processor (145)) doesnot have to require all merchants or retailers to send the detailedpurchase data (e.g., SKU level purchase details) for all paymenttransactions processed by the transaction handler (103) (or the issuerprocessor (145)).

For example, when the consumer account (146) of the user (103) hascollected a manufacturer coupon for a product or service that may besold by the merchant or retailer operating the transaction terminal(105), the transaction handler (103) is to request the purchase details(169) via the authorization response (138) in one embodiment. If thepurchase details (169) show that the conditions for the redemption ofthe manufacturer coupon are satisfied, the transaction handler (103) isto provide the benefit of the manufacturer coupon to the user (101) viacredits to the statement for the consumer account (146). This automationof the fulfillment of manufacturer coupon releases the merchant/retailerfrom the work and complexities in processing manufacturer offers andimproves user experiences. Further, retailers and manufacturers areprovided with a new consumer promotion distribution channel through thetransaction handler (103), which can target the offers based on thetransaction profiles (127) of the user (101) and/or the transaction data(109). In one embodiment, the transaction handler (103) can use theoffer for loyalty/reward programs.

In another example, if the user (101) is enrolled in a program torequest the transaction handler (103) to track and manage purchasedetails (169) for the user (103), the transaction handler (103) is torequest the transaction details (169) via the authorization response(138).

In one embodiment, a message for the authorization response (138) isconfigured to include a field to indicate whether purchase details arerequested for the transaction.

In one embodiment, the authorization response message includes a fieldto indicate whether the account (146) of the user (101) is a participantof a coupon redemption network. When the field indicates that theaccount (146) of the user (101) is a participant of a coupon redemptionnetwork, the merchant or retailer is to submit the purchase details(169) for the payment made using the account (146) of the user (101).

In one embodiment, when the request (139) for the purchase details (169)is present in the authorization response (138), the transaction terminal(105) of the merchant or retailer is to store the purchase details (169)with the authorization information provided in the authorizationresponse (138). When the transaction is submitted to the transactionhandler (103) for settlement, the purchase details (169) are alsosubmitted with the request for settlement.

In one embodiment, the purchase details (169) are transmitted to thetransaction handler (103) via a communication channel separate from thecommunication channel used for the authorization and/or settlementrequests for the transaction. For example, the merchant or the retailermay report the purchase details to the transaction handler (103) via aportal (143) of the transaction handler (103). In one embodiment, thereport includes an identification of the transaction (e.g., anauthorization code (137) for the payment transaction) and the purchasedetails (e.g., SKU number, Universal Product Code (UPC)).

In one embodiment, the portal (143) of the transaction handler (103) mayfurther communicate with the merchant or the retailer to reduce theamount of purchase detail data to be transmitted the transaction handler(103). For example, in one embodiment, the transaction handler (103)provides an indication of categories of services or products for whichthe purchase details (169) are requested; and the merchant or retaileris to report only the items that are in these categories. In oneembodiment, the portal (143) of the transaction handler (103) is to askthe merchant or the retailer to indicate whether the purchased itemsinclude a set of items required for the redemption of the offers.

In one embodiment, the merchant or retailer is to complete the purchasebased upon the indication of approval provided in the authorizationresponse (138). When the indicator (e.g., 139) is present in theauthorization response (138), the merchant (e.g. inventory managementsystem or the transaction terminal (105)) is to capture and retain thepurchase details (169) in an electronic data file. The purchase details(169) include the identification of the individual items purchased(e.g., SKU and/or UPC), their prices, and/or brief descriptions of theitems.

In one embodiment, the merchant or retailer is to send the transactionpurchase data file to the transaction handler (103) (or the issuerprocessor (145)) at the end of the day, or according to some otherprearranged schedule. In one embodiment, the data file for purchasedetails (169) is transmitted together with the request to settle thetransaction approved via the authorization response (138). In oneembodiment, the data file for purchase details (169) is transmittedseparately from the request to settle the transaction approved via theauthorization response (138).

Further details and examples of one embodiment of offer fulfillment areprovided in Prov. U.S. App. Ser. No. 61/347,797, filed May 24, 2010 andentitled “Systems and Methods for Redemption of Offers,” the disclosureof which is hereby incorporated herein by reference.

Offer Redemption

FIG. 10 shows a system to automate the processing of offers in responseto purchases made in various channels according to one embodiment.

In FIG. 10, the transaction handler (103) has a portal (143) and a datawarehouse (149) storing the transaction data (109) recording thetransactions processed by the transaction handler (103). Theadvertisement server (201) is to provide an advertisement (205) to thepoint of interaction (107), such as a web browser of the user (101).

In FIG. 10, the advertisement (205) is to include a link to the merchantwebsite (203) and an offer (186) with a link to the portal (143). Whenthe link to the merchant website (203) is selected on the point ofinteraction (107), the user (101) is to visit the merchant website (203)for further details about the products and/or services of the merchantor advertiser. When the link to the portal (143) is selected, the offer(186) is identified to the portal (143) for association with a consumeraccount (146) of the user (101).

In one embodiment, when the link to the portal (143) is selected, theuser (101) is to provide the account information (142) to the portal(143) via the point of interaction (107) to identify the consumeraccount (146) of the user (101). After both the consumer account (146)of the user (101) and the offer (186) are identified, the data warehouse(149) is to store the data to associate offer (186) with the accountinformation (142) in the account data (111) of the user (101).

In one embodiment, the account information (142) is pre-stored in theaccount data (111) of the user (101). The portal (143) is toauthenticate the identity of the user (101) in response to the userselection of the link to the portal (143). After the user (101) isidentified via authentication, the data warehouse (149) stores the datato associate offer (186) with the account information (142) in theaccount data (111) of the user (101).

For example, in one embodiment, the portal (143) is to initiallyidentify and authenticate the user (101) of the point of interaction(107) via a username and a password. In one embodiment, after theinitial authentication of the user (101), the portal (143) is to providea browser cookie to the point of interaction (107) to identify andauthenticate the user (101) when the user (101) subsequently visits theportal (143). In one embodiment, the browser cookie is to expire after apredetermined period of time, or after the user (101) signs off asession, or after the user (101) closes the web browser that was used tocomplete the initial authentication. In one embodiment, the browsercookie is to remain valid on the point of interaction (107) until adifferent user (101) is authenticated via a different username andpassword.

In one embodiment, the account data (111) of the user (101) may havemultiple consumer accounts (e.g., 146) under the control of one or moreissuer processors (e.g., 145). When the user (101) has multiple consumeraccounts (e.g., 146), the portal (143) is to prompt the user (101) toassociate the offer (186) with one of the consumer accounts (e.g., 146).The transaction handler (103) and/or the portal (143) are to monitor theactivity in the consumer account (e.g., 146) with which the offer (186)is associated to detect a transaction that qualifies for the redemptionof the offer (186).

After the offer (186) is associated with account information (142), thetransaction handler (103) and/or the portal (143) is to monitor thetransaction activities in the corresponding consumer account (146) todetect one or more transactions that qualify for the redemption of theoffer (186). For example, if the user (101) uses the account information(142) in the transaction terminal (105) to pay for a qualified purchase,the transaction handler (103) and/or the portal (143) is to identify thetransaction from the multiplicity of transactions processed by thetransaction handler (103) and to provide the benefit to the user (101)in accordance with the offer (186).

For example, in one embodiment, when processing a transaction at thetransaction handler (103), the account information (142) involved in thetransaction is checked to identify the associated offers (e.g., 186). Ifone or more offers (e.g., 186) are identified for the transaction, thetransaction record for the transaction and/or other information aboutthe transaction is used to determine if the redemption conditions of theoffer (186) are met by the transaction. If the redemption conditions ofthe offer (186) are met, the transaction handler (103) is to redeem theoffer (186) on behalf of the user (101) via statement credits to theconsumer account (146) identified by the account information (142).

In one embodiment, when the user (101) has multiple consumer accounts(e.g., 146), the transaction handler (103) and/or the portal (143) is tomonitor the activity in the multiple consumer accounts to detect atransaction that qualifies for the redemption of the offer (186). When aqualified transaction is detected in a consumer account (146), thetransaction handler (103) is to provide the statement credits to theconsumer account (146) with which the offer (186) is associated todetect a transaction that qualifies for the redemption of the offer(186). In one embodiment, when the user (101) has multiple consumeraccounts (e.g., 146), the portal (143) is to allow the user (101) to notassociate the offer (186) with a particular consumer account; and when aqualified transaction is detected in an consumer account (146), thetransaction handler (103) is to provide the statement credits to theconsumer account (146) in which the qualified transaction occurred.

In one embodiment, the offer (186) is pre-registered in the datawarehouse (149) prior to the delivery of the advertisement (205) fromthe advertisement sever (201) to the point of the interaction (107). Forexample, in one embodiment, the merchant or advertiser is to use theportal (143) to store data representing the offer (186) in the datawarehouse (149). The data representing the offer (186) includes thespecification of the benefit of the offer (186) and/or conditions forthe redemption of the offer (186). In response, the portal (143)provides an identifier of the offer (186) to uniquely identify the offer(186) among a plurality of offers registered in the data warehouse(149). In one embodiment, the identifier of the offer (186) is includedin the link to the portal (143) embedded in the advertisement (205).Thus, when the link containing the identifier of the offer (186) isselected, the identifier of the offer (186) is provided from the pointof interaction (107) to the portal (143) to identify the offer (186).

In one embodiment, the pre-registration of the offer (186) in the datawarehouse (149) by the merchant is not required. For example, thedetails of the offer (186), such as the specification of the benefit andthe conditions for the redemption of the offer (186), are embedded inthe link from the advertisement (205) to the portal (143). In oneembodiment, the link from the advertisement (205) to the portal (143)includes a location from which the portal (143) can obtain the detailsof the offer (186). For example, in one embodiment, the details of theoffer (186) are stored in the merchant website (203) and provided by themerchant website (203) via a web service. For example, in oneembodiment, the details of the offer (186) are stored in theadvertisement server (201), or a third party web service.

In FIG. 10, the advertisement (205) is provided by an advertisementserver (201) that is distinct and separate from the portal (143). Forexample, the advertisement server (201) may be operated by a third partyadvertisement network, a search engine, a social networking website, anonline marketplace, etc. In one embodiment, the advertisement (205) ispresented in a web page of the advertisement server (201), such as inthe search results of a search engine. In one embodiment, theadvertisement (205) is presented in a web page of a third party mediachannel, such as a blog site, a social networking website, an onlinenewspaper, etc. In one embodiment, the advertisement (205) is providedby the portal (143).

In one embodiment, the data warehouse (149) includes the transactionprofile (127) generated from the transaction data (109). The transactionprofile (127) of the user (101) is used to identify the advertisement(205) for the user (101). For example, in one embodiment, the advertiserserver (201) is to query the portal (143) to obtain the transactionprofile (127) of the user (101) or to obtain the advertisement (205).Details about using a browser cookie to obtain transaction-basedintelligence for targeted advertising in one embodiment are provided thesection entitled “TARGETING ADVERTISEMENT” and in the section entitled“BROWSER COOKIE.”

In one embodiment, when the advertisement (205) is identified, selected,customized, adjusted, and/or personalized based on the transactionprofile (127) of the user (101), the offer (186) is pre-associated withthe account information (142). For example, when the offer (186) isidentified by the advertisement server (201), the advertisement server(201) may report the delivery of the offer (186) to the user (101) tothe portal (143); and the user (101) does not have to select the link inthe advertisement (205) to register the offer (186) with the accountinformation (142). However, in one embodiment, the user (101) can followthe link to visit the portal (143) to confirm the registration of theoffer (186), to view the offers (e.g., 186) collected in the accountdata (111) of the user (101), to associate the offer (186) with aparticular consumer account (146) if the user (101) has multipleconsumer accounts, and/or for other purposes.

In one embodiment, the identification of the qualified transaction forthe redemption of the offer (186) links the online activities associatedwith the presentation of the advertisement (205) and the correspondingpurchase made out of the context of the advertisement, such as anoffline purchase in a retail store. Thus, the correlation informationallows the advertiser to assess the effectiveness of the advertisement(205) with improved accuracy. Details on linking online activities andoffline purchases in one embodiment are provided in the section entitled“CLOSE THE LOOP.”

In one embodiment, a server computer (e.g., the portal (143), theadvertisement server (201), and/or the merchant website (203)) is toprovide a user interface for a merchant to design and manage thedistribution of the offer (186) and/or the advertisement (205). Theadvertisements/offers can be distributed based on the real-time or nearreal-time activities in the financial accounts of the users (e.g., 101),in view of the transaction data (109) recorded by the transactionhandler (103). The online advertisement (205) has a link to the portal(143) to allow the user (101) to select the link to store the offer(186) provided in the online advertisement (205) in association with theaccount information (142) to facilitate the automation of the redemptionof the offer (186). The redemption of the offers is automated,regardless of whether the purchase is made online, offline in a retailstore, or via a mobile device (e.g., cellular phone, or PDA), whichenables the performance tracking of the online advertisements thattarget non-online purchases (or online purchases that are out of thecontext/session of the online advertisements). Thus, the fees for theadvertisements can be charged based on the performance measured in termsof purchases, instead of (or in combination with) other performanceindicators such as web traffic directed from the advertisements to thewebsites of the advertisers.

In one embodiment, the portal (143) (or, the advertisement server (201)or the merchant website (203)) contains an offer engine to present anoffer (186) to a customer. The offer engine of the portal (143) may minethe merchant data and/or transaction data (109) in an event-driven wayto analyze customer transaction authorization patterns to provide thebest personalized offers (e.g., 186). In one embodiment, the offers(e.g., 186) can be provided through existing publication channels, suchas search engines, online newspapers, blogs, social networking websites,online marketplaces, etc; and the offers (e.g., 186) can be redeemedwithout modifications to existing point of sale terminals. The offer(186) may be, for example, an online offer, such as a coupon. The offer(186) includes an identifier of the offer, such as a coupon code. Theidentifier of the offer (186) is provided to the portal (143) forassociation with the account information (142) to facilitate automatedredemption. In one embodiment, the identifier of the offer (186) isassociated with online activities of the user (101), such as viewing anadvertisement, performing online searches, web browsing, etc. Throughthe correlation of the identifier of the offer (186), the onlineactivities of the user (101) can be linked to offline purchases that areout of the context of the online activities.

In one embodiment, the merchant can register the offer (186) with anoffer redemption program hosted via the portal (143) of the transactionhandler (103) and set up the advertisement (205) to include theregistered offer (186). When the registered offer (186) is selected, theuser (101) is directed to the portal (143) for the offer redemptionprogram to associate the offer (186) with one or more financialtransaction cards (e.g., credit cards, debit cards, prepaid cards,banking cards, etc.) Thus, a merchant can be fully offline (e.g.,without a website for e-commerce) but still able to participate in theadvertisement campaign and have a way to measure the performance ofonline advertisements presented on behalf of the merchant.

In one embodiment, when the merchant/advertiser of the advertisement(205) does not have an online presence, the advertisement (205) does nothave a URL pointing to the website of the merchant/advertiser. Forexample, in one embodiment, the advertisement (205) is designed to havea single URL pointing to the web portal (143) for the management ofoffers (e.g., 186). Thus, the user (101) may follow the link to storethe offer via the web portal (143) and later visit an offline retailstore to make the purchase, where the offer (186) can be redeemed in anautomated way based on the transaction data (109) recorded by thetransaction handler (103) (or the issuer processor (145), or theacquirer processor (147)).

In one embodiment, the offer (186) has an identifier uniquely associatedwith the advertisement (205) (e.g., presented on a particular siteand/or presented via a particular distributor). When the offer (186) isredeemed in response to a qualified transaction being identified fromthe transaction data (109), the offer (186) links the transaction to theadvertisement (205) (e.g., presented on the particular site and/orpresented via the particular distributor). Thus, the advertiser ormerchant can determine the effectiveness of the advertisements (205) invarious contexts.

For example, if the advertisement (205) is placed on several sites bythe merchant and/or the distributor of the advertisement (205), theoffer redemption program allows the merchant and/or the distributor totell which site was most effective (e.g., in terms of causing the usersto click the advertisements to use the offer redemption program and/orcausing the users to make the purchases where the offers are redeemed).If the advertisement (205) is placed by several distributors, the offerredemption program allows the merchant to tell which distributor wasmost effective (e.g., in terms of user clicks to store the offers and/oruser purchases to redeem the offers). The offer redemption programallows the merchant and/or the distributor to identify the effectivesites and/or the performance of the advertisements based on userpurchases made using financial transaction cards provided by differentissuers.

In one embodiment, the automated redemption of the offer (186) providesimproved user experiences. For example, a customer may use any cardissued by different issuers associated with the transaction handler(103) to make the purchase; and the transaction handler (103) can redeemthe offer (186) automatically on behalf of the customer. The offerredemption program provides the consumer with a way to quickly associatean Internet offer (186) to a financial account (e.g., via clickingthrough the advertisement), and allows the consumer to automaticallyredeem the offer (186) by using any accounts that are processed by thetransaction handler (103) to make the purchase, regardless of thechannel of purchase.

In one embodiment, the user (101) can log into the site of the offerredemption program (e.g., the portal (143)) to manage offers (e.g.,viewing offers stored in the account of the user (101), viewing theterms and conditions of the offers, viewing which offers have beenfulfilled, viewing which offers are about to expire, deleting a selectedoffer, moving offers between cards, etc.)

The automated redemption of the offer (186) allows the purchase to betracked and correlated to the advertisement (205) that is presented on aspecific site (and by a specific distributor). If a distributor placesthe advertisement (205) on several sites, the offer redemption programcan provide a distributor report to tell which site was most effectivein leading to offer fulfillment (e.g., by using the offer (186)represented by different identifiers for the corresponding sites). Theoffer redemption program can provide distributor reports to tell whichadvertisements were fulfilled (e.g., loading to a purchase, online oroffline) and the sizes of the purchases resulting from the advertisement(205). This can help the distributor to monetize online ads that arefulfilled in general regardless of the fulfillment channels, andfulfilled offline in particular.

Since the redemption is fully automated, the merchant does not have totrain check out staff to handle advertisements and offers, such ascoupons.

In one embodiment, a confirmation that the offer (186) has been addedcan be optionally sent to the mobile phone of the user (101) based on apreference setting of the user (101); and a confirmation that an offerwas fulfilled can be optionally be sent to the mobile phone of the user(101). The user (101) can redeem the offer by simply using theassociated card/account to make the purchase, regardless of whether thepurchase is made online or offline.

In one embodiment, the advertisement (205) has multiple links embeddedin different portions of the advertisement. For example, the links mayhave one URL pointing to the website (203) of the merchant/advertiser ofthe advertisement (205) and another URL pointing to a web portal (143)for the management of offers, such as a web portal (143) of thetransaction handler (103). The URL pointing to the website (203) of themerchant/advertiser allows the advertisement (205) to drive the webtraffic to the website of the merchant/advertiser; and the URL pointingto the web portal (143) allows the user (101) to store the offer (e.g.,incentive, discount, rebate, coupon, reward, etc.) provided in theadvertisement (205) with a financial account (e.g., a credit cardaccount, a debit card account, a bank card account, a prepaid cardaccount, etc.), such as the consumer account (146). After the offer(186) is stored with the financial account, the offer (186) can beredeemed in an automated way when corresponding purchases are made viathe financial account.

In one embodiment, when the customer enters into an offline transaction(e.g., offline credit card transaction, offline debit card transaction,etc.) in which the offer (186) is redeemed, the operator of thetransaction handler (103) is to appropriately identify the identifier ofthe offer (186). In this way, the operator of the transaction handler(103) is to link the identifier of the offer (186) (and thus the onlineactivity of the customer) with the subsequent offline transaction. Thetransaction in which the offer is redeemed may occur in any channel andthus may include, for example, an offline transaction, an onlinetransaction, or a mobile transaction. The use of an identifier of anoffer (186) in this way links online behavior and offline behavioracross different merchants, and accordingly improves customer behaviortracking and allows better targeting of offers to customers. Inaddition, advertisers will realize better returns on investment fortheir campaigns.

In at least some of the examples discussed here, the web portal (143) isunder the control of the transaction handler (103), which allowsautomated redemptions of the offers when the transaction handler (103)processes the payment for the purchases made via the financial accountof the user (101). However, the web portal (143) may be implemented byother entities, such as a bank (e.g., an issuer bank, an acquirer bank),a financial management agency, or a third party that may or may not bedirectly involved in the processing of a transaction associated withfinancial transaction cards or accounts.

FIGS. 11-14 illustrate user interfaces for multi-channel offerredemption according to one embodiment. In FIG. 11, the presentation ofcontent (407) in a website is illustrated. The content (407) may bepresented with one or more advertisements (e.g., 409 and 401). In FIG.11, the advertisement providing the offer (401) also has a portion (403)which can be selected using a cursor (405) (or other selectionmechanisms, such as touch screen, voice command, etc.)

In one embodiment, when the portion (403) is selected as in FIG. 11, auser interface (411) as illustrated in FIG. 12 is presented to allow theuser (101) to store the offer (401) on the web portal (143) (e.g., underthe control of the transaction handler (103)).

The user (101) may have already logged into the web portal (143) usingthe web browser running on the point of interaction (107) (e.g., asAshley illustrated in FIG. 12). After the user (101) has logged into theweb portal (143) using the web browser, the web portal (143) may store abrowser cookie in the web browser of the user (101) to identify the user(101). Based on the cookie returned from the web browser while the user(101) follows the link embedded in the portion (403) of theadvertisement, the user interface (411) prompts the user (101) toconfirm the storing of the offer (401) in the account.

In FIG. 12, the link (413) allows the user (101) to log into a differentaccount to store the offer (401), if the account as indicated by thebrowser cookie is not the account of the user (101), or not the desiredaccount of the user (101). If the user (101) does not already have anaccount with the web portal (143), the user (101) may follow the link(415 or 413) to sign into the web portal (143) as a new user.

In one embodiment, the user (101) has multiple financial transactioncards supported by the web portal (143). The web portal (143) allows theuser (101) to store the offer (401) with one of the financialtransaction cards, as illustrated in FIG. 13. For example, in oneembodiment, the user (101) may select the radio button using the cursor(405) to associate the offer (401) with the card having a number endingwith “7776.” When a transaction qualified for the offer (401) is madevia the card that is associated with the offer (401), the web portal(143) is to automatically process the offer (401) forfulfillment/redemption.

In another embodiment, the offer (401) is stored in association with oneor more (or all) of the cards identified in the account. Thus, the offer(401) can be redeemed in an automated way, when any of the associatedcards is used to make the payment for the purchases that qualify for theoffer (401).

FIG. 14 illustrates a user interface to allow the user (101) to sign inas an existing user or a new user of the web portal (143), when thebrowser does not have a valid browser cookie to identify the consumeraccount (146) of the user (101).

In one embodiment, the web portal (143) is under the control of thetransaction handler (103); and the condition(s) of the offer (401) is(are) based on information accessible to the transaction handler (103)during the processing of a payment transaction submitted from thetransaction terminal (105). For example, the conditions may be based onthe identity of the merchant, the timing of the transaction, and/or theamount of the transaction (e.g., 10% off a purchase above $10.00 withinone hour of the advertisement that presents the offer (401)). Forexample, the conditions may be based on the information of multipletransactions (e.g., a discount on all purchases when total purchasesmade in a predetermined time period from the retail stores of a retailchain is above a predetermined threshold, a rebate when a time periodbetween two purchases from two predetermined, related merchants is lessthan a predetermined threshold, etc.).

In one embodiment, the redemption of the offer (401) is not based on thechannel though which the purchase is made. For example, the user (101)may redeem the offer (401) via an online purchase, or an offlinepurchase; or the user (101) may redeem the offer (401) without followingthe link of the advertisement to make the purchase online. For example,the user (101) may directly visit the online store of the merchant tomake the purchase, outside the context of the advertisement thatpresents the offer (401).

In one embodiment, the conditions of the offer (401) are not based onthe details of the product or service. Thus, the transaction handler(103) does not have to obtain the purchase details from the merchant (orthe transaction terminal (105)) to identify applicable and/or relevanttransactions for the offer (401). Alternatively, the conditions of theoffer (401) may be based on the identification of the specific productor service (e.g., Stock-Keeping Unit (SKU) of the product or service);and the transaction handler (103) is configured to receive at least therelevant information for the relevant products (e.g., via thetransaction terminal (105) during the authorization of the payment). Inone embodiment, the transaction handler (103) is to request purchasedetails (169) via an authorization response (138) if the transactionhandler (103) determines that the current transaction may qualify forredemption of the offer (401). Requesting purchase details (169)according to one embodiment is discussed in the section entitled“PURCHASE DETAILS.”

In one embodiment, when the web portal (143) is not under the control ofan entity directly involved in the processing of a transaction madeusing the financial account, the web portal (143) may communicate withone of the entities to obtain transaction information for thefulfillment the offers. Alternatively, the web portal (143) may allowthe user (101) to retrieve the offers (e.g., via a mobile communicationdevice, such as a cell phone) in an electronic form when the user (101)makes the purchase at the transaction terminal (105). The user (101) maypresent the offer (401) in the electronic form to the merchant forredemption.

In one embodiment, the redemption of the offer (401) is not directlyreflected on the transaction performed on the transaction terminal(105). Instead, the value of the offer (401) is reflected as credits tothe corresponding financial account that is used to pay for thetransaction. The web portal (143) may provide a notification to the user(101) to confirm the credit. For example, the web portal (143) (or thetransaction handler (103)) may transmit a text message to a mobile phoneof the user (101) to notify the user (101) about the redemption of theoffer (401) as statement credits in the credit card (or debit card, orbanking card, or prepaid card) of the user (101), as illustrated in FIG.15.

In one embodiment, the transaction handler (103) is to further settlethe cost for the offer (401) when providing the statement credits to theuser (101). For example, when the offer (401) is funded by the merchant,the transaction handler (103) is to charge the merchant, or deductpayments to the merchant, according to the statement credits provided tothe user (101). In one embodiment, the offer (401) is funded by a thirdparty, such as a manufacturer, an issuer, an acquirer, a loyaltyprogram, etc.; and the transaction handler (103) is to settle the costof the statement credits with the third party.

FIG. 15 illustrates a notification of offer redemption according to oneembodiment, in which a notification message (423) is sent to the mobilephone (421) of the user (101) via wireless telecommunication (e.g.,short message service (SMS), multi-media messaging service (MMS), email,instant message, voice message, etc.). In one embodiment, the message(423) is sent to the user (101) while the transaction submitted from thetransaction terminal (105) is being processed by the transaction handler(103).

In some embodiments, the message (423) may include an advertisementwhich may present a new offer (e.g., selected based on a relationshipwith the current transaction). For example, based on past transactions,the transaction handler (103) may determine that, when the user (101)makes the current purchase, the likelihood of the user (101) to make arelated purchase is higher than a threshold. Thus, to promote therelated purchase, the transaction handler (103) may identify the newoffer and transmit the new offer to the mobile phone (421) (e.g., withthe notification message (423)). If the user (101) is interested in thenew offer, the user (101) may select the new offer for storing in theaccount of the user (101) via the web portal (143). In some embodiments,the web portal (143) may include gateways for storing the offers viaother communication channels, such as text message, email, etc.

In another embodiment, the transaction handler (103) is to modify thetransaction to reflect the redemption of the offer (401), or transmitthe offer (401) to the transaction terminal (105) for redemption, ortransmit the offer (401) to the mobile phone (421) for redemption at thetransaction terminal (105).

In one embodiment, the offer redemption program allows the linkagebetween the advertisement that presents the offer (401) and the purchasethat uses the offer (401). The linkage can be reliably established evenwhen the purchase is out of the context of the advertisement thatprovides the offer (401), such as when the user (101) makes the purchasein a retail store offline, or when the user (101) visits the onlinestore of the merchant directly in a different session, without goingthrough the advertisement (e.g., after storing the offer (401) andclosing the current web session). The linkage allows the tracking ofmulti-channels sales to actual Internet advertisements that cause thesales.

The linkage enables a new pay-for-performance type of advertisements,where the performance of the advertisements is not merely determinedbased on the web traffic directed from the advertisements to thewebsites of the merchants or advertisers. Instead, the performance ofthe advertisements can be reliably linked to the actual purchasesresulting from the advertisements. For example, when the offer (401) isredeemed, the advertiser/merchant that provided the offer (401) in thewebsite as illustrated in FIG. 11 can be charged an advertisement fee.In some embodiments, no advertisement fee for the advertisement ischarged until the offer (401) presented in the advertisement isredeemed. For example, the advertiser/merchant may specify anadvertisement fee that is charged only when the offer (401) presented inthe advertisement is redeemed as a result of a qualified purchase. Insome embodiments, the advertisement fee may be charged in combinationwith other fees for the distribution of the advertisement. A distributerof the advertisement may prioritize the advertisements based at least inpart on the advertisement fee that is charged only when the offer (401)is redeemed. The new type of pay-for-performance advertisements can bevery useful for merchants/advertisers who do not have an online storeand/or do not benefit substantially from web traffic. The advertisementcan be used to drive purchases offline, or out of the context of theadvertisement, while allowing the performance of the advertisement to betracked.

In one embodiment, the transaction handler (103) is configured toidentify or select offers based on real-time transactions or nearreal-time transactions (e.g., based on transactions occurring within apredetermined period of time, such as a few minutes, half an hour, onehour or a day). For example, based on the transaction data (109) thetransaction handler (103) may determine related second purchases thatare likely to occur in close proximity (e.g., in time or geographiclocation) to first purchases. Thus, at the time of the first purchases(or shortly after the first purchases), the offers related to the secondpurchases may be presented to the user (101) (e.g., via the transactionterminal (105), such as a self-assist checkout terminal, ATM, vendingmachine, gas pump, POS terminal, or the point of interaction (107), suchas a web browser, mobile phone, receipt, electronic kiosk, etc.) topromote the second purchases.

In one embodiment, the web portal (143) provides a user interface toallow the user (101) to view the offers that are stored in their accountand/or the status of the offers. For example, the user (101) may requesta view of pending offers, redeemed offers, expired offers, etc. The user(101) may be provided with new offers, modified offers, offers extendedbeyond the original expiration dates, etc.

In one embodiment, the web portal (143) may provide a user interface forthe merchants to design and manage the offers (e.g., 401). Theconditions and benefits of the offers can be specified by the merchantsvia the user interface. The merchants/advertisers may specify theadvertisement fees for the advertisements, where the advertisements feesare not charged until the offers associated with the advertisement feeare redeemed for qualified transactions. In some embodiments, theadvertisement fees are charged in the form of debits to the merchantaccounts for the corresponding transactions that are settled. Thus, themerchants/advertisers do not have to pay for the advertisement feesuntil the merchants/advertisers are paid for the purchases by the users(e.g., 101).

In one embodiment, a merchant can specify the terms of the offers (e.g.,401), the identifications of the offers, the expiration dates, etc.through the web portal (143). In some embodiments, the web portal (143)may provide the code for the portion (403) of the advertisement, so thatthe merchant may use the code with separate, third party distributors ofadvertisements for their advertisement campaigns. In some embodiments,the portion (403) of the advertisement includes information to identifythe merchant/advertiser, and the details of the offer (401), such as theterms, conditions, expiration date, benefits, etc. For example, theportion (403) of the advertisement may include an identifier unique tothe merchant/advertiser, an identifier unique to the offer (401) fromthe merchant/advertiser, etc. The set of identifiers are stored in theaccount (e.g., as part of the account data (111)) after the user (101)selects the portion (403).

In some embodiments, when the user (101) selects the portion (403) tostore the offer (401) with the account of the user (101), the web portal(143) also stores the identification of the advertisement, the time ofthe advertisement, and/or the location (e.g., the website) in which theadvertisement is presented. For example, the referral URL for the webrequest generated from the selection of the portion (403) in FIG. 11 canbe used to identify the web location/website that presented theadvertisement. The information about the advertisement can besubsequently used to determine improved ways to deliver advertisements,and/or provide credits or rewards to the operator of the media thatpresents the advertisement. For example, the operator of the media maybe compensated a flat fee for each presentation of the advertisement,and/or a portion of the advertisement fee that is charged when the offer(401) is redeemed.

Alternatively, the portion (403) may include a unique code thatidentifies the instance of the offer (401) as presented in the websiteof the content (407). The unique code may be pre-associated withinformation about the advertisement that contains the offer (401), suchas the identity of the website that presents the offer (401), the dateand time of the presentation of the offer (401), the terms, conditionsand benefits of the offer (401), etc. When the portion (403) isselected, the unique code is stored in the account to associate theinformation represented by the unique code with the account, which whenused in a subsequent transaction that satisfies the terms and conditionsof the offer (401) causes the automated redemption of the offer (401),as well as the linkage between the purchase and the informationrepresented by the unique code.

FIG. 16 illustrates a method for offer redemption according to oneembodiment. In FIG. 16, a web portal (143) is designed to present (501)a user interface to a merchant to manage creation and distribution of anoffer to be presented in an advertisement. A computer associated withweb portal (143) is used to select (503) the advertisement forpresentation to the user (101) based on substantially real-timeactivities in an account of the user (101). A web server is used toprovide (505) the user (101) with the online advertisement having afirst portion (403) linked to an offer redemption portal and a secondportion (e.g., offer 401) optionally linked to a website of anadvertiser. When the user (101) selects the first portion (403) of theadvertisement, the web portal (143) presents (507) a user interface toallow the user (101) to associate the offer (401) with the account ofthe user (101). When the user (101) pays for a purchase as advertised bythe advertisement using the account, the transaction handler (103)processes (509) the transaction in the account of the user (101) for thepurchase and credits the account for redemption of the offer (401). Theweb portal (143) may provide (511) a mobile message to the user (101)about the redemption while processing the transaction for the purchaseand charge (513) the advertiser a predetermined fee for theadvertisement, in response to the redemption of the offer (401).

In one embodiment, the offer redemption portal provides users with theability to quickly register for offers, simple fulfillment and offermanagement (e.g., no need to remember offer specifics after a click),and the ability to track offers, and track the status of theirredemptions. The offer redemption portal works for online and offlineoffers.

In one embodiment, the offer redemption portal provides merchants withthe ability to track effectiveness of offers across distributionchannels, simpler more effective advertisements to drive incrementaltraffic, and the ability to track and provide detailed fulfillmentmetrics online & offline, with no POS changes (or training for check outstaff), with no changes to ad distribution channels, and withoutincremental cost to implement.

In one embodiment, the offer redemption portal may provide some benefitsto the issuer of the financial transaction cards and/or the transactionhandler (103), such as incremental traffic, satisfied cardholders,loyalty to the issuer, branding opportunities, incremental processingvolume, new revenue opportunities, etc.

FIGS. 17-21 illustrate screen images of a user interface for offerredemption according to one embodiment. FIG. 17 illustrates an examplewhen a user (101) arrives at a publisher site like Media Channel ABC. Atthe Media Channel ABC website, the user (101) sees a Merchant XYZ offer(523) with the insert (521) linked to the portal (143). When the user(101) clicks the advertisement/offer (523) (not the insert (521)), theuser (101) is taken to the Merchant XYZ website, as illustrated in FIG.18. At the Merchant XYZ website, as illustrated in FIG. 18, the user(101) can click the “back” button (524) of the browser to return to theMedia Channel ABC webpage illustrated in FIG. 17. In FIG. 17, if theuser (101) clicks on the insert (521) and the user (101) is recognizedby the offer redemption site (e.g., via a browser cookie), the offerredemption site (e.g., hosted on the portal (143)) displays the web page(526) in a separate window as illustrated in FIG. 19, which allows theuser (101) to select a card of the user and save the offer (523) to theselected card. In FIG. 19, the advertisement/offer (523) is alsodisplayed in the user interface (526) to store the offer (523), butwithout the insert (521). Once the user (101) clicks the “save” button(527), the offer redemption site displays a confirmation page asillustrated in FIG. 20.

In FIG. 20, the user (101) can click the “close” button (529) to closethe window (533) and return to the Media Channel ABC website asillustrated in FIG. 20.

In one embodiment, the user (101) may also provide a phone number of amobile phone (421) to the offer redemption site (e.g., as a userselected preference to receive mobile notification of saved offers); andonce the offer (523) is saved with a card of the user (101), the offerredemption site can transmit a mobile message (537) to the user (101),as illustrated in FIG. 22.

If the user (101) is not recognized by the offer redemption site (e.g.,via a browser cookie), or the user (101) clicks the “not John” link(525) in FIG. 19 to sign in as a different user of the offer redemptionsite, the offer redemption site displays the web page (535) asillustrated in FIG. 21 to allow the user (101) to sign in and to havethe browser store a browser cookie to identify the user (101).

In one embodiment, a computing apparatus is configured to receive a userselection of a first portion (403 or 521) of an advertisement (205) thatprovides an offer (186 or 401) to a user (101), present a user interface(411 or 526) in response to the user selection of the first portion (403or 521) of the advertisement (205), store data to associate the offer(186 or 401) with a consumer account (146) of the user (101) in responseto a user request made in the user interface (411 or 526), monitortransactions processed at a transaction handler (103) to identify apayment transaction in the consumer account (146) of the user (101) fora purchase in accordance with the offer (186 or 401), and provide abenefit of the offer (186 or 401) to the user (101) via the consumeraccount (146) of the user (101), if the payment transaction isidentified. In one embodiment, the user interface (526) includes theadvertisement (e.g., 523) without the first portion (521).

In one embodiment, the computing apparatus includes at least one of: atransaction handler (103), a portal (143), a data warehouse (149), aprofile generator (121), an advertisement selector (133), and anadvertisement server (201). Details about the transaction handler (103)and the portal (143) in one embodiment are provided in the sectionentitled “TRANSACTION DATA BASED PORTAL.”

In one embodiment, the advertisement (205) is an online advertisement;and the purchase is an offline purchase. The computing apparatus is toprovide the benefit of the offer via statement credits to the consumeraccount (146) of the user (101).

In one embodiment, the computing apparatus is under control of thetransaction handler (103); the advertisement (205) is presented onbehalf of an advertiser different from the transaction handler (103);and the advertisement (205) further comprises a second portion (401 or523) which, when selected, directs the user (101) to a website (203) ofthe advertiser.

In one embodiment, the computing apparatus is to charge the advertiser afee for the advertisement (205), in response to the providing of thebenefit of the offer (186, 523 or 401).

In one embodiment, the computing apparatus is to select theadvertisement (205) for presentation to the user (101) based on at leastone transaction in the consumer account (146) of the user (101)processed by the transaction handler (103).

In one embodiment, the computing apparatus is to present a userinterface to the advertiser to manage creation and distribution of theoffer (186, 523 or 401), which may provide a benefit in the form of adiscount, incentive, reward, gift, or cash back. In one embodiment, thecomputing apparatus is to store data representing the offer (186, 523 or401) prior to the user selection, in response to input received via theuser interface presented to the advertiser.

In one embodiment, the computing apparatus is to aggregate a pluralityof payment transactions in the consumer account (146) of the user (101)to determine eligibility for the benefit of the offer (186, 523 or 401).For example, the user (101) is offered a rebate of a predeterminedamount when accumulated amount of purchases from a merchant, made withina predetermined time period, is above a threshold.

In one embodiment, the computing apparatus is to provide a message (423or 537) to a mobile phone (421) of the user (101) in response to theuser (101) making the payment transaction. The message (423 or 537)indicates that the offer (186 or 401) will be fulfilled via credits tothe consumer account (146) of the user (101).

In one embodiment, each of the transactions processed by the transactionhandler (103) is to make a payment from an issuer to an acquirer via thetransaction handler (103) in response to an account identifier of acustomer, as issued by the issuer, being submitted by a merchant to theacquirer. The issuer is to make the payment on behalf of the customer,and the acquirer is to receive the payment on behalf of the merchant.

In one embodiment, the advertisement (205) is presented in a point ofinteraction (107), such as a web browser of the user (101). Detailsabout the point of interaction (107) in one embodiment are provided inthe section entitled “POINT OF INTERACTION.”

In one embodiment, the computing apparatus is to further identify theconsumer account (146) of the user (101) based on a browser cookiereceived from the web browser and to provide a list in the userinterface (526) to allow the user (101) to select the consumer account(146) from a plurality of accounts of the user (101) identified based onthe browser cookie. In one embodiment, the computing apparatus is toauthenticate the user (101) via a password and provide the browsercookie to the web browser after the user (101) is authenticated. In oneembodiment, the accounts of the user (101) are controlled by differentissuer processors (e.g., 145).

In one embodiment, the advertisement (205) is provided by the computingapparatus. In another embodiment, the advertisement (205) is provided byan advertisement server (201) different and separate from the computingapparatus.

In one embodiment, the computing apparatus is to generate a profile(e.g., 121, 131, or 341) of the user (101) based on the transaction data(109) recorded by the transaction handler (103). In one embodiment, theprofile (e.g., 121, 131, or 341) includes a plurality of valuesrepresenting aggregated spending of the user (101) in various areas tosummarize transactions of the user (101); and the advertisement (205) isselected using the profile (e.g., 121, 131, or 341) of the user (101).Details about the profile (e.g., 121, 133 or 341) in one embodiment areprovided in the section entitled “TRANSACTION PROFILE” and the sectionentitled “AGGREGATED SPENDING PROFILE.”

In one embodiment, the computing apparatus is to identify theadvertisement (205) based on the profile (e.g., 121, 133 or 341) of theuser (101).

Details about the system in one embodiment are provided in the sectionentitled “SYSTEM,” “CENTRALIZED DATA WAREHOUSE” and “HARDWARE.”

ROI Tools

In one embodiment, the transaction handler (103) provides the benefit ofdelivering information based on transactional data to enhance thirdparty product offerings. The data generated by the transaction handler(103) can be integrated or combined with third party products to improveofferings to end users (e.g., advertisers). For example, the transactionhandler (103) may deliver the user specific profile (131) to allow asearch engine to deliver targeted offers.

In one embodiment, the transaction handler (103) may provide merchantbenchmarking tools, as discussed in U.S. Pat. App. Pub. No.2009/0048884, filed Aug. 14, 2008 and entitled “Merchant BenchmarkingTool,” U.S. pat. app. Ser. No. 12/940,562, filed Nov. 5, 2010, and U.S.pat. app. Ser. No. 12/940,664, filed Nov. 5, 2010, the disclosures ofwhich are incorporated herein by reference. The profile data and themerchant benchmarking information can be integrated and/or combined withvarious third party product offerings, such as advertising ROI tools,website improvement tools, search tools, advertisement campaign andretail analytics tools, customer segmentation tools, etc.

In one embodiment, the transaction handler (103) can differentiate thetransactions completed online with a merchant and transactions completedoffline in a retail store of the merchant. The identification of thechannel through which the transactions are completed can be combinedwith other data for the checkout funnel analysis (e.g., if the customerabandons the online shopping cart at a particular point in the websiteof the merchant, determine whether the customer later purchased theitems offline, in a retail store).

In one embodiment, the transaction handler (103) is configured to usethe transaction data (109) to measure the effectiveness of anadvertiser's campaign. For example, in one embodiment, the transactionhandler (103) is configured to determine the influence of theadvertisement campaign on the spending statistics online and offline,following an advertisement campaign run from 10-11 AM. In oneembodiment, the transaction handler (103) is configured to determine theinfluence a number of days after the advertisement campaign, such asseven days after the advertisement campaign.

In one embodiment, the transaction handler (103) is configured todetermine the actual spending and transaction volume for variousgeographical locations to allow advertisers to choose to display onlineads to customers based on the actual spending and transaction volumes atthe geographical locations.

In one embodiment, the transaction handler (103) is configured toprovide transaction related information to help advertisers improve andunderstand the effectiveness of their websites. For example, thetransaction handler (103) is configured to determine the percentage ofcustomers who viewed the website that have made total purchases, onlineand in-store, over a threshold amount (e.g., $10 or another amount).

In one embodiment, the transaction handler (103) is configured toprovide information on transaction related offline spending in currentlyknown advertising ROI tools. In one embodiment, the transaction handler(103) is configured to provide transaction information about online andin-store spending at a specific merchant.

Spending Patterns

In one embodiment, the transaction handler (103) is configured toidentify the differences in spending behaviors influenced by orindirectly related to advertisements. For example, the transactionhandler (103) is configured to determine and present the purchase habitsof customers who saw a digital advertisement in the mall from 1-2 PM vs.those who didn't see the advertisement, based on purchase transactionsin a particular merchant store. The identified differences in spendingbehavior and/or the influence of the advertisement can be presented tothe merchant to allow the merchant to design advertisement campaigns tooptimize ROI (Return on Investment).

In one embodiment, a third party provides data identifying customers whoreceived the advertisement and customers who did not receive theadvertisement. The third party data is combined with the transactiondata (109) maintained at the transaction handler (103) to identify theinfluence of the advertisement and/or the difference in spendingpatterns in different sets of customers. Alternatively, the correlator(117) of the transaction handler (103) is used to correlate theadvertisements with transactions to identify customers who have receivedthe advertisement and customers who have not received the advertisement.

In one embodiment, payment transactions with a merchant are correlatedwith an advertisement to identify the customers who saw theadvertisement. The advertisement may be presented in a public location,where multiple customers may see the advertisement simultaneously (e.g.,presented on a digital billboard in a mall). Alternatively, theadvertisement may be individually presented to the customers (e.g., viamobile phones, web browsers).

For example, in one embodiment, the advertisement includes an offer(e.g., a discount, an incentive, a reward) associated with theadvertisement. The offer is redeemable when a purchase from the merchantis paid for through the payment processor. Thus, when a paymenttransaction includes the redemption of the offer, the customer who makesthe payment is identified as a customer who saw the advertisement.

Further details about offers and techniques to correlate the transactionwith the online activities can be found in U.S. pat. app. Ser. No.12/849,801, filed Aug. 3, 2010 and entitled “Systems and Methods forMulti-Channel Offer Redemption,” and U.S. pat. app. Ser. No. 12/849,789,filed Aug. 3, 2010 and entitled “Systems and Methods for Closing theLoop between Online Activities and Offline Purchases,” the disclosuresof which applications are incorporated herein by reference.

In one embodiment, the advertisement is presented at a location near theretail store of the merchant (e.g., in the shopping mall where theretail store is located, or on the mobile phone of the customer when themobile phone is in the shopping mall, near or in the retail store). Insome embodiments, the experience with the advertisement can be linked tothe purchase based on the time proximity between the advertisement andthe purchase and/or based on the matching between the content of theadvertisement and items purchased, with or without the help of theinformation related to the redemption of an offer.

In some embodiments, the advertisement may be presented to differentcustomers at different locations, regardless of the degree of spatialproximity between the customer and the retail store. For example, when aredeemable offer is used to link the purchase with the advertisement,the offer can be configured to be redeemable via purchases throughvarious different channels (e.g., online, offline, phone). Thus, theinfluence of the advertisement over the purchase behavior acrossdifferent channels can be assessed.

In one embodiment, the spending patterns of the customers who receivedthe advertisement can be determined from the data recording thetransactions between the customers and the merchant after theadvertisement. The spending patterns can be compared to those of thecustomers who did not receive the advertisement. The transaction handler(103) may use a set of criteria to select customers to represent thosewho did not receive the advertisement.

For example, the customers who made purchases during the time period ofthe advertisement at locations far away from the location of theadvertisement can be considered as customers who did not receive theadvertisement.

For example, the customers who have received the advertisement (e.g.,individually via their mobile phones, web browsers, etc.) can be trackedto select customers who have not received the advertisement. Since thecustomers who have received the advertisement are individually tracked,other customers that are not in the set of tracked customers arecustomers who have not received the advertisement.

In some embodiments, the spending behaviors of the customers whoreceived the advertisement are compared with the spending behaviors ofthe customers who did not receive the advertisement, regardless ofwhether or not the customers made purchases from the merchant as aresult of the advertisement. In some embodiments, different subsets ofthe customers who received advertisements are compared. For example, thespending behaviors of the customers who made purchases as a result ofthe advertisement can be compared to the spending behaviors of thecustomers who did not make purchases after receiving the advertisement.

For example, a different advertisement may be shown at a differentlocation in the same period of time, where the chance of a customervisiting both locations to see both advertisements is small. Thus,customers who made purchases as a result of one of the advertisementsmay be considered as customers who did not receive the otheradvertisement. In one embodiment, the advertisements are selected fromdifferent merchant categories. In another embodiment, a set ofadvertisements selected from a diverse set of different merchantcategories are used to select a diverse set of customers havingdifferent interests in products and services. The diverse set ofcustomers are not provided with one advertisement to establish abaseline for the influence of this advertisement on the spendingpattern.

In a further embodiment, the advertisements are selected from the samemerchant categories (e.g., an advertisement for a competitor or partnerof the merchant) to compare the difference in the influence ofadvertisements for peers.

In one embodiment, to determine the influence of the advertisement, thetransaction handler selects customers who have similar spendingbehaviors prior to the advertisement for comparison. For example,aggregated spending profiles generated based on the past transactiondata can be used to characterize the spending behaviors of thecustomers; and the similar spending profiles can be identified based onidentifying profiles in the same spending cluster and/or having profilevalues within a predetermined region. The spending behavior reflected inthe transaction data with the merchant after the advertisement can beexamined to determine the influence of the advertisement.

In one embodiment, to determine the influence of the advertisement, thespending behaviors of the customers before and after the advertisementare compared for the same set of customers who received theadvertisement. Thus, the influence of the advertisement on the spendingbehaviors in the same customers can be identified. Based on thedifferent patterns of the influences, the customers can be segmented(e.g., via cluster analysis) and the characteristics of different typesof customers that are influenced differently by the advertisement can berecognized.

In one embodiment, the spending behavior of the customers who haveviewed the advertisements is compared with the spending behavior of thecustomers who have not viewed the advertisement to determine thedifference in spending behaviors in different types of customers (e.g.,the customers whose activities can cause the customers to view theadvertisements, and other customers). After the different sets ofcustomers are identified, the spending behaviors of the different setsof customers are compared (e.g., based on the transactions performedbefore the presentation of the advertisement). In one embodiment, thespending of customers in each of the sets is aggregated/averaged togenerate an aggregated spending profile (341) of the correspondingcustomer set; and the aggregated spending profiles (341) of the customersets are compared to determine the differences in spending behaviors.

The comparisons of the spending behaviors allow the merchants toidentify the effectiveness of the advertisement in various situationsand thus design effective advertisement campaigns to improve ROI.

FIG. 23 shows a system to identify differences in spending patternsaccording to one embodiment. In FIG. 23, users (101) can use thetransaction terminal (105) to conduct payment transactions (e.g., usingcredit cards, debit cards, prepaid cards). The transaction handler (103)processes the transactions between the users (101) and merchants togenerate the transaction data (109). The profile generator (121) can usethe transaction data (109) and/or the account data (111) to generate(e.g., periodically) the transaction profiles (127) to characterize thespending patterns of the users (101). The profile selector (129) canselect a user specific profile (131) from the transaction profiles (127)for the advertisement selector (133) to select a targeted advertisement(205), which may include an offer, such as coupons, incentives, rewards,etc. In some embodiments, the user specific profile (131) may begenerated from the transaction data (109) in real time when needed.

In some embodiments, the offers (186) presented in the advertisement(205) are specific to the users (101) who receive the offers (186).Different offers (186) can be used to track different instances of theadvertisement (205) (e.g., by presenting the advertisement (205) to themobile phone or web browser of the users (101)). In other embodiments,the same offer (186) is presented to different users (101) (e.g., bypresenting the advertisement (205) on a billboard). The user specificprofile (131) may be specific to a group of users (101) who might seethe advertisement (205). In some embodiments, the advertisement (205) isselected without using the user specific profile (131) derived from thetransaction data (109) of the transaction handler (103).

In FIG. 23, the point of interaction (107) (e.g., web browser, mobilephone, billboard) presents the advertisement (205) to the user (101).The correlator (117) is used to correlate the advertisement (205) to thetransaction data (109) to identify respective users (101) that havereceived the advertisement (205).

In some embodiments, the correlator (117) is configured to identify allusers (101) who have received the advertisement (205), regardlesswhether or not the respective users (101) make purchases in response tothe advertisement (205). For example, the correlator (117) may identifythe users (101) based on the user specific profile (131) used by theprofile selector (129) to select targeted advertisements (e.g., 205),when the user specific profile (131) is selected for individual users(101). In some embodiments, a separate user tracker (113) is used toidentify all users (101) who have received the advertisement (205).

In further embodiments, the correlator (117) may not be capable ofidentifying at least some of the users (101) who received theadvertisement (205) but did not respond to the advertisement (205)(e.g., to make a purchase, to load an offer (186) presented in theadvertisement (205) into an account under the control of the transactionhandler (103) or the correlator (117), etc.). For example, when theadvertisement (205) is presented to an unknown population, thecorrelator (117) may not be able to identify users (101) who are notresponding to the advertisement (205). However, if the users (101) makepurchases in response to the advertisement (205) (or respond to theadvertisement (205) in certain ways, such as loading the coupon offeredin the advertisement (205) into a payment card account), the transactiondata (109) can be correlated to the advertisement (205) to identify theusers (101). In some embodiments, the correlator (117) can improve thecorrelation via the redemption of offers (186) provided in theadvertisement (205).

Further details about examples of correlating individual transactionswith individual advertisements can be found in the sections entitled“CLOSE THE LOOP,” “MATCHING ADVERTISEMENT & TRANSACTION,” “COUPONMATCHING” and “OFFER REDEMPTION.”

In one embodiment, the pattern recognizer (615) is used to identify thepatterns in the transaction data (109) for different groups of the users(101), such as the portion of the users (101) who received theadvertisement (205) and the portion of the users (101) who did notreceive the advertisement (205). The transaction data (109) fordifferent groups of the users (101) can be aggregated to derive theinfluences of the advertisement (205), such as the change in spendingfrequency, spending amount, and/or the length of the period for theinfluence of the advertisement (205).

FIG. 24 shows a method to identify differences in spending patternsaccording to one embodiment. In FIG. 24, a computing device isconfigured to correlate (601) first transactions with an advertisement(205), determine (603) first customers who made the first transactions,identify (605) a first set of transactions of the first customers,determine (607) second customers not in the first customers, identify(609) a second set of transactions of the second customers, anddetermine (611) a first pattern in the first set of transactions and asecond pattern in the second set of transactions for comparison.

In one embodiment, the first set of transactions are made between thefirst customers and a merchant; and the second set of transactions aremade between the second customers and the merchant. In one embodiment,the first set of transactions and the second set of transactions aremade after the first transactions; and the first pattern and the secondpattern are compared to determine the influence of the advertisement(205).

In one embodiment, the first set of transactions and the second set oftransactions are made prior to presentation of the advertisement (205).The first pattern and the second pattern are compared to determinedifference in spending behavior of different groups of customers.

In one embodiment, the advertisement (205) is presented in a time periodin a commercial district. In one embodiment, the second customers aredetermined based on the second customers having performed secondtransactions outside the commercial district during the time period.

In one embodiment, the second customers are determined based oncorrelating the purchases of the second customer with a differentadvertisement (205) that is presented at a location different from wherethe advertisement (205) is presented to the first customers. Thelocations are apart from each other so that the probability of acustomer seeing both advertisements (205) is lower than a threshold.

In one embodiment, the first set of transactions includes the firsttransactions correlated with the advertisement (205).

Details on correlating advertisements and transactions in someembodiments are provided in the sections entitled “CLOSE THE LOOP,”“MATCHING ADVERTISEMENT & TRANSACTION,” “COUPON MATCHING” and “OFFERREDEMPTION.”

In one embodiment, the computing device is further configured toidentify a difference in the first pattern and the second pattern.

In one embodiment, the first pattern in the transactions of the firstcustomers is determined based on a first aggregated spending profile(e.g., 341) of the first customers; and the second pattern in thetransactions of the second customers is determined based on a secondaggregated spending profile (e.g., 341) of the second customers. In oneembodiment, the transactions of the first customers are aggregatedand/or averaged to generate the first aggregated spending profile (e.g.,341); and the transactions of the second customers are aggregated and/oraveraged to generate the second aggregated spending profile (e.g., 341).In one embodiment, the difference is in a factor value (e.g., 344)defined based on a factor analysis (327) of transaction data (109)processed by a transaction handler (103). Details about spending profile(e.g., 121, 131 or 341) in one embodiment are provided in the sectionentitled “TRANSACTION PROFILE” and the section entitled “AGGREGATEDSPENDING PROFILE.”

In one embodiment, the advertisement is presented in a digital form; andthe first transactions are initiated in offline retail stores.

In one embodiment, the advertisement (205) includes an offer (186); andthe first transactions are processed in connection with redemption ofthe offer (186). The redemption of the offer (186) during the process ofthe transactions links the advertisement (205) that provides the offer(186).

In one embodiment, the computing device is configured to associate theoffer (186) with accounts of the first customers in response to inputreceived from the first customers. For example, in one embodiment, theinput can be received from the first customers via mobile phones of thefirst customers and the portal (143) of the transaction handler (103).For example, in one embodiment, the portal (143) is configured toreceive text messages identifying the offer (186) to store the offer(186) under the accounts associated with the phone numbers of therespective mobile phones. For example, in one embodiment, the portal(143) is configured to communicate with mobile applications running inthe mobile phones of the respective customers to associate the offers(186) with their account information (142) and/or account identificationdevice (141).

In one embodiment, the input to associate the offer (186) with theaccount information (142) is received in response to a selection of theadvertisement (205) by the first customer.

Further examples and details about associating an offer (186) with aconsumer account (146) in one embodiment is provided in the sectionentitled “OFFER REDEMPTION.”

In one embodiment, the computing device includes a portal (143) topresent a difference between the first pattern in the first set oftransactions of the first customers and the second pattern in the secondset of transactions of the second customers.

In one embodiment, the computing device or system includes a transactionhandler (103) to process transactions, a data warehouse (149) to storedata (e.g., 109, 301) recording the transactions, and at least oneprocessor (e.g., 173) coupled with the data warehouse (149) andconfigured to identify first customers who made first transactionscorrelated with an advertisement (205), identify second customers not inthe first customers, and determine a difference between a first patternin a first set of transactions of the first customers and a secondpattern in a second set of transactions of the second customers.

In one embodiment, the computing device further includes a portal (143)configured to receive input to associated the advertisement (205) withaccount identifiers (e.g., 142) of the first customers (e.g., 101).

In one embodiment, each of the transactions is processed to make apayment from an issuer to an acquirer via the transaction handler (103)in response to an account identifier (e.g., 142) of a customer, asissued by the issuer, being submitted by a merchant to the acquirerprocessor (147). The issuer processor (145) of the issuer is to make thepayment on behalf of the customer; and the acquirer processor (147) ofthe acquirer is to receive the payment on behalf of the merchant.

Details about the system in one embodiment are provided in the sectionentitled “SYSTEM,” “CENTRALIZED DATA WAREHOUSE” and “HARDWARE.”

Variations

Some embodiments use more or fewer components than those illustrated inFIGS. 1 and 4-7. For example, in one embodiment, the user specificprofile (131) is used by a search engine to prioritize search results.In one embodiment, the correlator (117) is to correlate transactionswith online activities, such as searching, web browsing, and socialnetworking, instead of or in addition to the user specific advertisementdata (119). In one embodiment, the correlator (117) is to correlatetransactions and/or spending patterns with news announcements, marketchanges, events, natural disasters, etc. In one embodiment, the data tobe correlated by the correlator with the transaction data (109) may notbe personalized via the user specific profile (131) and may not be userspecific. In one embodiment, multiple different devices are used at thepoint of interaction (107) for interaction with the user (101); and someof the devices may not be capable of receiving input from the user(101). In one embodiment, there are transaction terminals (105) toinitiate transactions for a plurality of users (101) with a plurality ofdifferent merchants. In one embodiment, the account information (142) isprovided to the transaction terminal (105) directly (e.g., via phone orInternet) without the use of the account identification device (141).

In one embodiment, at least some of the profile generator (121),correlator (117), profile selector (129), and advertisement selector(133) are controlled by the entity that operates the transaction handler(103). In another embodiment, at least some of the profile generator(121), correlator (117), profile selector (129), and advertisementselector (133) are not controlled by the entity that operates thetransaction handler (103).

For example, in one embodiment, the entity operating the transactionhandler (103) provides the intelligence (e.g., transaction profiles(127) or the user specific profile (131)) for the selection of theadvertisement; and a third party (e.g., a web search engine, apublisher, or a retailer) may present the advertisement in a contextoutside a transaction involving the transaction handler (103) before theadvertisement results in a purchase.

For example, in one embodiment, the customer may interact with the thirdparty at the point of interaction (107); and the entity controlling thetransaction handler (103) may allow the third party to query forintelligence information (e.g., transaction profiles (127), or the userspecific profile (131)) about the customer using the user data (125),thus informing the third party of the intelligence information fortargeting the advertisements, which can be more useful, effective andcompelling to the user (101). For example, the entity operating thetransaction handler (103) may provide the intelligence informationwithout generating, identifying or selecting advertisements; and thethird party receiving the intelligence information may identify, selectand/or present advertisements.

Through the use of the transaction data (109), account data (111),correlation results (123), the context at the point of interaction,and/or other data, relevant and compelling messages or advertisementscan be selected for the customer at the points of interaction (e.g.,107) for targeted advertising. The messages or advertisements are thusdelivered at the optimal time for influencing or reinforcing brandperceptions and revenue-generating behavior. The customers receive theadvertisements in the media channels that they like and/or use mostfrequently.

In one embodiment, the transaction data (109) includes transactionamounts, the identities of the payees (e.g., merchants), and the dateand time of the transactions. The identities of the payees can becorrelated to the businesses, services, products and/or locations of thepayees. For example, the transaction handler (103) maintains a databaseof merchant data, including the merchant locations, businesses,services, products, etc. Thus, the transaction data (109) can be used todetermine the purchase behavior, pattern, preference, tendency,frequency, trend, budget and/or propensity of the customers in relationto various types of businesses, services and/or products and in relationto time.

In one embodiment, the products and/or services purchased by the user(101) are also identified by the information transmitted from themerchants or service providers. Thus, the transaction data (109) mayinclude identification of the individual products and/or services, whichallows the profile generator (121) to generate transaction profiles(127) with fine granularity or resolution. In one embodiment, thegranularity or resolution may be at a level of distinct products andservices that can be purchased (e.g., stock-keeping unit (SKU) level),or category or type of products or services, or vendor of products orservices, etc.

The profile generator (121) may consolidate transaction data for aperson having multiple accounts to derive intelligence information aboutthe person to generate a profile for the person (e.g., transactionprofiles (127), or the user specific profile (131)).

The profile generator (121) may consolidate transaction data for afamily having multiple accounts held by family members to deriveintelligence information about the family to generate a profile for thefamily (e.g., transaction profiles (127), or the user specific profile(131)).

Similarly, the profile generator (121) may consolidate transaction datafor a group of persons, after the group is identified by certaincharacteristics, such as gender, income level, geographical location orregion, preference, characteristics of past purchases (e.g., merchantcategories, purchase types), cluster, propensity, demographics, socialnetworking characteristics (e.g., relationships, preferences, activitieson social networking websites), etc. The consolidated transaction datacan be used to derive intelligence information about the group togenerate a profile for the group (e.g., transaction profiles (127), orthe user specific profile (131)).

In one embodiment, the profile generator (121) may consolidatetransaction data according to the user data (125) to generate a profilespecific to the user data (125).

Since the transaction data (109) are records and history of pastpurchases, the profile generator (121) can derive intelligenceinformation about a customer using an account, a customer using multipleaccounts, a family, a company, or other groups of customers, about whatthe targeted audience is likely to purchase in the future, howfrequently, and their likely budgets for such future purchases.Intelligence information is useful in selecting the advertisements thatare most useful, effective and compelling to the customer, thusincreasing the efficiency and effectiveness of the advertising process.

In one embodiment, the transaction data (109) are enhanced withcorrelation results (123) correlating past advertisements and purchasesthat result at least in part from the advertisements. Thus, theintelligence information can be more accurate in assisting with theselection of the advertisements. The intelligence information may notonly indicate what the audience is likely to purchase, but also howlikely the audience is to be influenced by advertisements for certainpurchases, and the relative effectiveness of different forms ofadvertisements for the audience. Thus, the advertisement selector (133)can select the advertisements to best use the opportunity to communicatewith the audience. Further, the transaction data (109) can be enhancedvia other data elements, such as program enrollment, affinity programs,redemption of reward points (or other types of offers), onlineactivities, such as web searches and web browsing, social networkinginformation, etc., based on the account data (111) and/or other data,such as non-transactional data discussed in U.S. pat. app. Ser. No.12/614,603, filed Nov. 9, 2009 and entitled “Analyzing LocalNon-Transactional Data with Transactional Data in Predictive Models,”the disclosure of which is hereby incorporated herein by reference.

In one embodiment, the entity operating the transaction handler (103)provides the intelligence information in real-time as the request forthe intelligence information occurs. In other embodiments, the entityoperating the transaction handler (103) may provide the intelligenceinformation in batch mode. The intelligence information can be deliveredvia online communications (e.g., via an application programminginterface (API) on a website, or other information server), or viaphysical transportation of a computer readable media that stores thedata representing the intelligence information.

In one embodiment, the intelligence information is communicated tovarious entities in the system in a way similar to, and/or in parallelwith the information flow in the transaction system to move money. Thetransaction handler (103) routes the information in the same way itroutes the currency involved in the transactions.

In one embodiment, the portal (143) provides a user interface to allowthe user (101) to select items offered on different merchant websitesand store the selected items in a wish list for comparison, reviewing,purchasing, tracking, etc. The information collected via the wish listcan be used to improve the transaction profiles (127) and deriveintelligence on the needs of the user (101); and targeted advertisementscan be delivered to the user (101) via the wish list user interfaceprovided by the portal (143). Examples of user interface systems tomanage wish lists are provided in U.S. pat. app. Ser. No. 12/683,802,filed Jan. 7, 2010 and entitled “System and Method for Managing Items ofInterest Selected from Online Merchants,” the disclosure of which ishereby incorporated herein by reference.

Aggregated Spending Profile

In one embodiment, the characteristics of transaction patterns ofcustomers are profiled via clusters, factors, and/or categories ofpurchases. The transaction data (109) may include transaction records(301); and in one embodiment, an aggregated spending profile (341) isgenerated from the transaction records (301), in a way illustrated inFIG. 2, to summarize the spending behavior reflected in the transactionrecords (301).

In one embodiment, each of the transaction records (301) is for aparticular transaction processed by the transaction handler (103). Eachof the transaction records (301) provides information about theparticular transaction, such as the account number (302) of the consumeraccount (146) used to pay for the purchase, the date (303) (and/or time)of the transaction, the amount (304) of the transaction, the ID (305) ofthe merchant who receives the payment, the category (306) of themerchant, the channel (307) through which the purchase was made, etc.Examples of channels include online, offline in-store, via phone, etc.In one embodiment, the transaction records (301) may further include afield to identify a type of transaction, such as card-present,card-not-present, etc.

In one embodiment, a “card-present” transaction involves physicallypresenting the account identification device (141), such as a financialtransaction card, to the merchant (e.g., via swiping a credit card at aPOS terminal of a merchant); and a “card-not-present” transactioninvolves presenting the account information (142) of the consumeraccount (146) to the merchant to identify the consumer account (146)without physically presenting the account identification device (141) tothe merchant or the transaction terminal (105).

In one embodiment, certain information about the transaction can belooked up in a separate database based on other information recorded forthe transaction. For example, a database may be used to storeinformation about merchants, such as the geographical locations of themerchants, categories of the merchants, etc. Thus, the correspondingmerchant information related to a transaction can be determined usingthe merchant ID (305) recorded for the transaction.

In one embodiment, the transaction records (301) may further includedetails about the products and/or services involved in the purchase. Forexample, a list of items purchased in the transaction may be recordedtogether with the respective purchase prices of the items and/or therespective quantities of the purchased items. The products and/orservices can be identified via stock-keeping unit (SKU) numbers, orproduct category IDs. The purchase details may be stored in a separatedatabase and be looked up based on an identifier of the transaction.

When there is voluminous data representing the transaction records(301), the spending patterns reflected in the transaction records (301)can be difficult to recognize by an ordinary person.

In one embodiment, the voluminous transaction records (301) aresummarized (335) into aggregated spending profiles (e.g., 341) toconcisely present the statistical spending characteristics reflected inthe transaction records (301). The aggregated spending profile (341)uses values derived from statistical analysis to present the statisticalcharacteristics of transaction records (301) of an entity in a way easyto understand by an ordinary person.

In FIG. 2, the transaction records (301) are summarized (335) via factoranalysis (327) to condense the variables (e.g., 313, 315) and viacluster analysis (329) to segregate entities by spending patterns.

In FIG. 2, a set of variables (e.g., 311, 313, 315) are defined based onthe parameters recorded in the transaction records (301). The variables(e.g., 311, 313, and 315) are defined in a way to have meanings easilyunderstood by an ordinary person. For example, variables (311) measurethe aggregated spending in super categories; variables (313) measure thespending frequencies in various areas; and variables (315) measure thespending amounts in various areas. In one embodiment, each of the areasis identified by a merchant category (306) (e.g., as represented by amerchant category code (MCC), a North American Industry ClassificationSystem (NAICS) code, or a similarly standardized category code). Inother embodiments, an area may be identified by a product category, aSKU number, etc.

In one embodiment, a variable of a same category (e.g., frequency (313)or amount (315)) is defined to be aggregated over a set of mutuallyexclusive areas. A transaction is classified in only one of the mutuallyexclusive areas. For example, in one embodiment, the spending frequencyvariables (313) are defined for a set of mutually exclusive merchants ormerchant categories. Transactions falling with the same category areaggregated.

Examples of the spending frequency variables (313) and spending amountvariables (315) defined for various merchant categories (e.g., 306) inone embodiment are provided in U.S. pat. app. Ser. No. 12/537,566, filedAug. 7, 2009 and entitled “Cardholder Clusters,” and in Prov. U.S. Pat.App. Ser. No. 61/182,806, filed Jun. 1, 2009 and entitled “CardholderClusters,” the disclosures of which applications are hereby incorporatedherein by reference.

In one embodiment, super categories (311) are defined to group thecategories (e.g., 306) used in transaction records (301). The supercategories (311) can be mutually exclusive. For example, each merchantcategory (306) is classified under only one super merchant category butnot any other super merchant categories. Since the generation of thelist of super categories typically requires deep domain knowledge aboutthe businesses of the merchants in various categories, super categories(311) are not used in one embodiment.

In one embodiment, the aggregation (317) includes the application of thedefinitions (309) for these variables (e.g., 311, 313, and 315) to thetransaction records (301) to generate the variable values (321). Thetransaction records (301) are aggregated to generate aggregatedmeasurements (e.g., variable values (321)) that are not specific to aparticular transaction, such as frequencies of purchases made withdifferent merchants or different groups of merchants, the amounts spentwith different merchants or different groups of merchants, and thenumber of unique purchases across different merchants or differentgroups of merchants, etc. The aggregation (317) can be performed for aparticular time period and for entities at various levels.

In one embodiment, the transaction records (301) are aggregatedaccording to a buying entity. The aggregation (317) can be performed ataccount level, person level, family level, company level, neighborhoodlevel, city level, region level, etc. to analyze the spending patternsacross various areas (e.g., sellers, products or services) for therespective aggregated buying entity. For example, the transactionrecords (301) for a particular account (e.g., presented by the accountnumber (302)) can be aggregated for an account level analysis. Toaggregate the transaction records (301) in account level, thetransactions with a specific merchant or merchants in a specificcategory are counted according to the variable definitions (309) for aparticular account to generate a frequency measure (e.g., 313) for theaccount relative to the specific merchant or merchant category; and thetransaction amounts (e.g., 304) with the specific merchant or thespecific category of merchants are summed for the particular account togenerate an average spending amount for the account relative to thespecific merchant or merchant category. For example, the transactionrecords (301) for a particular person having multiple accounts can beaggregated for a person level analysis, the transaction records (301)aggregated for a particular family for a family level analysis, and thetransaction records (301) for a particular business aggregated for abusiness level analysis.

The aggregation (317) can be performed for a predetermined time period,such as for the transactions occurring in the past month, in the pastthree months, in the past twelve months, etc.

In another embodiment, the transaction records (301) are aggregatedaccording to a selling entity. The spending patterns at the sellingentity across various buyers, products or services can be analyzed. Forexample, the transaction records (301) for a particular merchant havingtransactions with multiple accounts can be aggregated for a merchantlevel analysis. For example, the transaction records (301) for aparticular merchant group can be aggregated for a merchant group levelanalysis.

In one embodiment, the aggregation (317) is formed separately fordifferent types of transactions, such as transactions made online,offline, via phone, and/or “card-present” transactions vs.“card-not-present” transactions, which can be used to identify thespending pattern differences among different types of transactions.

In one embodiment, the variable values (e.g., 323, 324, . . . , 325)associated with an entity ID (322) are considered the random samples ofthe respective variables (e.g., 311, 313, 315), sampled for the instanceof an entity represented by the entity ID (322). Statistical analyses(e.g., factor analysis (327) and cluster analysis (329)) are performedto identify the patterns and correlations in the random samples.

For example, a cluster analysis (329) can identify a set of clusters andthus cluster definitions (333) (e.g., the locations of the centroids ofthe clusters). In one embodiment, each entity ID (322) is represented asa point in a mathematical space defined by the set of variables; and thevariable values (323, 324, . . . , 325) of the entity ID (322) determinethe coordinates of the point in the space and thus the location of thepoint in the space. Various points may be concentrated in variousregions; and the cluster analysis (329) is configured to formulate thepositioning of the points to drive the clustering of the points. Inother embodiments, the cluster analysis (329) can also be performedusing the techniques of Self Organizing Maps (SOM), which can identifyand show clusters of multi-dimensional data using a representation on atwo-dimensional map.

Once the cluster definitions (333) are obtained from the clusteranalysis (329), the identity of the cluster (e.g., cluster ID (343))that contains the entity ID (322) can be used to characterize spendingbehavior of the entity represented by the entity ID (322). The entitiesin the same cluster are considered to have similar spending behaviors.

Similarities and differences among the entities, such as accounts,individuals, families, etc., as represented by the entity ID (e.g., 322)and characterized by the variable values (e.g., 323, 324, . . . , 325)can be identified via the cluster analysis (329). In one embodiment,after a number of clusters of entity IDs are identified based on thepatterns of the aggregated measurements, a set of profiles can begenerated for the clusters to represent the characteristics of theclusters. Once the clusters are identified, each of the entity IDs(e.g., corresponding to an account, individual, family) can be assignedto one cluster; and the profile for the corresponding cluster may beused to represent, at least in part, the entity (e.g., account,individual, family). Alternatively, the relationship between an entity(e.g., an account, individual, family) and one or more clusters can bedetermined (e.g., based on a measurement of closeness to each cluster).Thus, the cluster related data can be used in a transaction profile (127or 341) to provide information about the behavior of the entity (e.g.,an account, an individual, a family).

In one embodiment, more than one set of cluster definitions (333) isgenerated from cluster analyses (329). For example, cluster analyses(329) may generate different sets of cluster solutions corresponding todifferent numbers of identified clusters. A set of cluster IDs (e.g.,343) can be used to summarize (335) the spending behavior of the entityrepresented by the entity ID (322), based on the typical spendingbehavior of the respective clusters. In one example, two clustersolutions are obtained; one of the cluster solutions has 17 clusters,which classify the entities in a relatively coarse manner; and the othercluster solution has 55 clusters, which classify the entities in arelative fine manner. A cardholder can be identified by the spendingbehavior of one of the 17 clusters and one of the 55 clusters in whichthe cardholder is located. Thus, the set of cluster IDs corresponding tothe set of cluster solutions provides a hierarchical identification ofan entity among clusters of different levels of resolution. The spendingbehavior of the clusters is represented by the cluster definitions(333), such as the parameters (e.g., variable values) that define thecentroids of the clusters.

In one embodiment, the random variables (e.g., 313 and 315) as definedby the definitions (309) have certain degrees of correlation and are notindependent from each other. For example, merchants of differentmerchant categories (e.g., 306) may have overlapping business, or havecertain business relationships. For example, certain products and/orservices of certain merchants have cause and effect relationships. Forexample, certain products and/or services of certain merchants aremutually exclusive to a certain degree (e.g., a purchase from onemerchant may have a level of probability to exclude the user (101) frommaking a purchase from another merchant). Such relationships may becomplex and difficult to quantify by merely inspecting the categories.Further, such relationships may shift over time as the economy changes.

In one embodiment, a factor analysis (327) is performed to reduce theredundancy and/or correlation among the variables (e.g., 313, 315). Thefactor analysis (327) identifies the definitions (331) for factors, eachof which represents a combination of the variables (e.g., 313, 315).

In one embodiment, a factor is a linear combination of a plurality ofthe aggregated measurements (e.g., variables (313, 315)) determined forvarious areas (e.g., merchants or merchant categories, products orproduct categories). Once the relationship between the factors and theaggregated measurements is determined via factor analysis, the valuesfor the factors can be determined from the linear combinations of theaggregated measurements and be used in a transaction profile (127 or341) to provide information on the behavior of the entity represented bythe entity ID (e.g., an account, an individual, a family).

Once the factor definitions (331) are obtained from the factor analysis(327), the factor definitions (331) can be applied to the variablevalues (321) to determine factor values (344) for the aggregatedspending profile (341). Since redundancy and correlation are reduced inthe factors, the number of factors is typically much smaller than thenumber of the original variables (e.g., 313, 315). Thus, the factorvalues (344) represent the concise summary of the original variables(e.g., 313, 315).

For example, there may be thousands of variables on spending frequencyand amount for different merchant categories; and the factor analysis(327) can reduce the factor number to less than one hundred (and evenless than twenty). In one example, a twelve-factor solution is obtained,which allows the use of twelve factors to combine the thousands of theoriginal variables (313, 315); and thus, the spending behavior inthousands of merchant categories can be summarized via twelve factorvalues (344). In one embodiment, each factor is combination of at leastfour variables; and a typical variable has contributions to more thanone factor.

In one example, hundreds or thousands of transaction records (301) of acardholder are converted into hundreds or thousands of variable values(321) for various merchant categories, which are summarized (335) viathe factor definitions (331) and cluster definitions (333) into twelvefactor values (344) and one or two cluster IDs (e.g., 343). Thesummarized data can be readily interpreted by a human to ascertain thespending behavior of the cardholder. A user (101) may easily specify aspending behavior requirement formulated based on the factor values(344) and the cluster IDs (e.g., to query for a segment of customers, orto request the targeting of a segment of customers). The reduced size ofthe summarized data reduces the need for data communication bandwidthfor communicating the spending behavior of the cardholder over a networkconnection and allows simplified processing and utilization of the datarepresenting the spending behavior of the cardholder.

In one embodiment, the behavior and characteristics of the clusters arestudied to identify a description of a type of representative entitiesthat are found in each of the clusters. The clusters can be named basedon the type of representative entities to allow an ordinary person toeasily understand the typical behavior of the clusters.

In one embodiment, the behavior and characteristics of the factors arealso studied to identify dominant aspects of each factor. The clusterscan be named based on the dominant aspects to allow an ordinary personto easily understand the meaning of a factor value.

In FIG. 2, an aggregated spending profile (341) for an entityrepresented by an entity ID (e.g., 322) includes the cluster ID (343)and factor values (344) determined based on the cluster definitions(333) and the factor definitions (331). The aggregated spending profile(341) may further include other statistical parameters, such asdiversity index (342), channel distribution (345), category distribution(346), zip code (347), etc., as further discussed below.

In one embodiment, the diversity index (342) may include an entropyvalue and/or a Gini coefficient, to represent the diversity of thespending by the entity represented by the entity ID (322) acrossdifferent areas (e.g., different merchant categories (e.g., 306)). Whenthe diversity index (342) indicates that the diversity of the spendingdata is under a predetermined threshold level, the variable values(e.g., 323, 324, . . . , 325) for the corresponding entity ID (322) maybe excluded from the cluster analysis (329) and/or the factor analysis(327) due to the lack of diversity. When the diversity index (342) ofthe aggregated spending profile (341) is lower than a predeterminedthreshold, the factor values (344) and the cluster ID (343) may notaccurately represent the spending behavior of the corresponding entity.

In one embodiment, the channel distribution (345) includes a set ofpercentage values that indicate the percentages of amounts spent indifferent purchase channels, such as online, via phone, in a retailstore, etc.

In one embodiment, the category distribution (346) includes a set ofpercentage values that indicate the percentages of spending amounts indifferent super categories (311). In one embodiment, thousands ofdifferent merchant categories (e.g., 306) are represented by MerchantCategory Codes (MCC), or North American Industry Classification System(NAICS) codes in transaction records (301). These merchant categories(e.g., 306) are classified or combined into less than one hundred supercategories (or less than twenty). In one example, fourteen supercategories are defined based on domain knowledge.

In one embodiment, the aggregated spending profile (341) includes theaggregated measurements (e.g., frequency, average spending amount)determined for a set of predefined, mutually exclusive merchantcategories (e.g., super categories (311)). Each of the super merchantcategories represents a type of products or services a customer maypurchase. A transaction profile (127 or 341) may include the aggregatedmeasurements for each of the set of mutually exclusive merchantcategories. The aggregated measurements determined for the predefined,mutually exclusive merchant categories can be used in transactionprofiles (127 or 341) to provide information on the behavior of arespective entity (e.g., an account, an individual, or a family).

In one embodiment, the zip code (347) in the aggregated spending profile(341) represents the dominant geographic area in which the spendingassociated with the entity ID (322) occurred. Alternatively or incombination, the aggregated spending profile (341) may include adistribution of transaction amounts over a set of zip codes that accountfor a majority of the transactions or transaction amounts (e.g., 90%).

In one embodiment, the factor analysis (327) and cluster analysis (329)are used to summarize the spending behavior across various areas, suchas different merchants characterized by merchant category (306),different products and/or services, different consumers, etc. Theaggregated spending profile (341) may include more or fewer fields thanthose illustrated in FIG. 2. For example, in one embodiment, theaggregated spending profile (341) further includes an aggregatedspending amount for a period of time (e.g., the past twelve months); inanother embodiment, the aggregated spending profile (341) does notinclude the category distribution (346); and in a further embodiment,the aggregated spending profile (341) may include a set of distancemeasures to the centroids of the clusters. The distance measures may bedefined based on the variable values (323, 324, . . . , 325), or basedon the factor values (344). The factor values of the centroids of theclusters may be estimated based on the entity ID (e.g., 322) that isclosest to the centroid in the respective cluster.

Other variables can be used in place of, or in additional to, thevariables (311, 313, 315) illustrated in FIG. 2. For example, theaggregated spending profile (341) can be generated using variablesmeasuring shopping radius/distance from the primary address of theaccount holder to the merchant site for offline purchases. When suchvariables are used, the transaction patterns can be identified based atleast in part on clustering according to shopping radius/distance andgeographic regions. Similarly, the factor definition (331) may includethe consideration of the shopping radius/distance. For example, thetransaction records (301) may be aggregated based on the ranges ofshopping radius/distance and/or geographic regions. For example, thefactor analysis can be used to determine factors that naturally combinegeographical areas based on the correlations in the spending patterns invarious geographical areas.

In one embodiment, the aggregation (317) may involve the determinationof a deviation from a trend or pattern. For example, an account makes acertain number of purchases a week at a merchant over the past 6 months.However, in the past 2 weeks the number of purchases is less than theaverage number per week. A measurement of the deviation from the trendor pattern can be used (e.g., in a transaction profile (127 or 341) as aparameter, or in variable definitions (309) for the factor analysis(327) and/or the cluster analysis) to define the behavior of an account,an individual, a family, etc.

FIG. 3 shows a method to generate an aggregated spending profileaccording to one embodiment. In FIG. 3, computation models areestablished (351) for variables (e.g., 311, 313, and 315). In oneembodiment, the variables are defined in a way to capture certainaspects of the spending statistics, such as frequency, amount, etc.

In FIG. 3, data from related accounts are combined (353). For example,when an account number change has occurred for a cardholder in the timeperiod under analysis, the transaction records (301) under the differentaccount numbers of the same cardholder are combined under one accountnumber that represents the cardholder. For example, when the analysis isperformed at a person level (or family level, business level, socialgroup level, city level, or region level), the transaction records (301)in different accounts of the person (or family, business, social group,city or region) can be combined under one entity ID (322) thatrepresents the person (or family, business, social group, city orregion).

In one embodiment, recurrent/installment transactions are combined(355). For example, multiple monthly payments may be combined andconsidered as one single purchase.

In FIG. 3, account data are selected (357) according to a set ofcriteria related to activity, consistency, diversity, etc.

For example, when a cardholder uses a credit card solely to purchasegas, the diversity of the transactions by the cardholder is low. In sucha case, the transactions in the account of the cardholder may not bestatistically meaningful to represent the spending pattern of thecardholder in various merchant categories. Thus, in one embodiment, ifthe diversity of the transactions associated with an entity ID (322) isbelow a threshold, the variable values (e.g., 323, 324, . . . , 325)corresponding to the entity ID (322) are not used in the clusteranalysis (329) and/or the factor analysis (327). The diversity can beexamined based on the diversity index (342) (e.g., entropy or Ginicoefficient), or based on counting the different merchant categories inthe transactions associated with the entity ID (322); and when the countof different merchant categories is fewer than a threshold (e.g., 5),the transactions associated with the entity ID (322) are not used in thecluster analysis (329) and/or the factor analysis (327) due to the lackof diversity.

For example, when a cardholder uses a credit card only sporadically(e.g., when running out of cash), the limited transactions by thecardholder may not be statistically meaningful in representing thespending behavior of the cardholder. Thus, in one embodiment, when thenumbers of transactions associated with an entity ID (322) is below athreshold, the variable values (e.g., 323, 324, . . . , 325)corresponding to the entity ID (322) are not used in the clusteranalysis (329) and/or the factor analysis (327).

For example, when a cardholder has only used a credit card during aportion of the time period under analysis, the transaction records (301)during the time period may not reflect the consistent behavior of thecardholder for the entire time period. Consistency can be checked invarious ways. In one example, if the total number of transactions duringthe first and last months of the time period under analysis is zero, thetransactions associated with the entity ID (322) are inconsistent in thetime period and thus are not used in the cluster analysis (329) and/orthe factor analysis (327). Other criteria can be formulated to detectinconsistency in the transactions.

In FIG. 3, the computation models (e.g., as represented by the variabledefinitions (309)) are applied (359) to the remaining account data(e.g., transaction records (301)) to obtain data samples for thevariables. The data points associated with the entities, other thanthose whose transactions fail to meet the minimum requirements foractivity, consistency, diversity, etc., are used in factor analysis(327) and cluster analysis (329).

In FIG. 3, the data samples (e.g., variable values (321)) are used toperform (361) factor analysis (327) to identify factor solutions (e.g.,factor definitions (331)). The factor solutions can be adjusted (363) toimprove similarity in factor values of different sets of transactiondata (109). For example, factor definitions (331) can be applied to thetransactions in the time period under analysis (e.g., the past twelvemonths) and be applied separately to the transactions in a prior timeperiod (e.g., the twelve months before the past twelve months) to obtaintwo sets of factor values. The factor definitions (331) can be adjustedto improve the correlation between the two set of factor values.

The data samples can also be used to perform (365) cluster analysis(329) to identify cluster solutions (e.g., cluster definitions (333)).The cluster solutions can be adjusted (367) to improve similarity incluster identifications based on different sets of transaction data(109). For example, cluster definitions (333) can be applied to thetransactions in the time period under analysis (e.g., the past twelvemonths) and be applied separately to the transactions in a prior timeperiod (e.g., the twelve months before the past twelve months) to obtaintwo sets of cluster identifications for various entities. The clusterdefinitions (333) can be adjusted to improve the correlation between thetwo set of cluster identifications.

In one embodiment, the number of clusters is determined from clusteringanalysis. For example, a set of cluster seeds can be initiallyidentified and used to run a known clustering algorithm. The sizes ofdata points in the clusters are then examined. When a cluster containsless than a predetermined number of data points, the cluster may beeliminated to rerun the clustering analysis.

In one embodiment, standardizing entropy is added to the clustersolution to obtain improved results.

In one embodiment, human understandable characteristics of the factorsand clusters are identified (369) to name the factors and clusters. Forexample, when the spending behavior of a cluster appears to be thebehavior of an internet loyalist, the cluster can be named “internetloyalist” such that if a cardholder is found to be in the “internetloyalist” cluster, the spending preferences and patterns of thecardholder can be easily perceived.

In one embodiment, the factor analysis (327) and the cluster analysis(329) are performed periodically (e.g., once a year, or six months) toupdate the factor definitions (331) and the cluster definitions (333),which may change as the economy and the society change over time.

In FIG. 3, transaction data (109) are summarized (371) using the factorsolutions and cluster solutions to generate the aggregated spendingprofile (341). The aggregated spending profile (341) can be updated morefrequently than the factor solutions and cluster solutions, when the newtransaction data (109) becomes available. For example, the aggregatedspending profile (341) may be updated quarterly or monthly.

Various tweaks and adjustments can be made for the variables (e.g., 313,315) used for the factor analysis (327) and the cluster analysis (329).For example, the transaction records (301) may be filtered, weighted orconstrained, according to different rules to improve the capabilities ofthe aggregated measurements in indicating certain aspects of thespending behavior of the customers.

For example, in one embodiment, the variables (e.g., 313, 315) arenormalized and/or standardized (e.g., using statistical average, mean,and/or variance).

For example, the variables (e.g., 313, 315) for the aggregatedmeasurements can be tuned, via filtering and weighting, to predict thefuture trend of spending behavior (e.g., for advertisement selection),to identify abnormal behavior (e.g., for fraud prevention), or toidentify a change in spending pattern (e.g., for advertisement audiencemeasurement), etc. The aggregated measurements, the factor values (344),and/or the cluster ID (343) generated from the aggregated measurementscan be used in a transaction profile (127 or 341) to define the behaviorof an account, an individual, a family, etc.

In one embodiment, the transaction data (109) are aged to provide moreweight to recent data than older data. In other embodiments, thetransaction data (109) are reverse aged. In further embodiments, thetransaction data (109) are seasonally adjusted.

In one embodiment, the variables (e.g., 313, 315) are constrained toeliminate extreme outliers. For example, the minimum values and themaximum values of the spending amounts (315) may be constrained based onvalues at certain percentiles (e.g., the value at one percentile as theminimum and the value at 99 percentile as the maximum) and/or certainpredetermined values. In one embodiment, the spending frequencyvariables (313) are constrained based on values at certain percentilesand median values. For example, the minimum value for a spendingfrequency variable (313) may be constrained at P₁−k×(M−P₁), where P₁ isthe one percentile value, M the median value, and k a predeterminedconstant (e.g., 0.1). For example, the maximum value for a spendingfrequency variable (313) may be constrained at P₉₉+a×(P₉₉×M), where P₉₉is the 99 percentile value, M the median value, and k a predeterminedconstant (e.g., 0.1).

In one embodiment, variable pruning is performed to reduce the number ofvariables (e.g., 313, 315) that have less impact on cluster solutionsand/or factor solutions. For example, variables with standard variationless than a predetermined threshold (e.g., 0.1) may be discarded for thepurpose of cluster analysis (329). For example, analysis of variance(ANOVA) can be performed to identify and remove variables that are nomore significant than a predetermined threshold.

The aggregated spending profile (341) can provide information onspending behavior for various application areas, such as marketing,fraud detection and prevention, creditworthiness assessment, loyaltyanalytics, targeting of offers, etc.

For example, clusters can be used to optimize offers for various groupswithin an advertisement campaign. The use of factors and clusters totarget advertisement can improve the speed of producing targetingmodels. For example, using variables based on factors and clusters (andthus eliminating the need to use a large number of convention variables)can improve predictive models and increase efficiency of targeting byreducing the number of variables examined. The variables formulatedbased on factors and/or clusters can be used with other variables tobuild predictive models based on spending behaviors.

In one embodiment, the aggregated spending profile (341) can be used tomonitor risks in transactions. Factor values are typically consistentover time for each entity. An abrupt change in some of the factor valuesmay indicate a change in financial conditions, or a fraudulent use ofthe account. Models formulated using factors and clusters can be used toidentify a series of transactions that do not follow a normal patternspecified by the factor values (344) and/or the cluster ID (343).Potential bankruptcies can be predicted by analyzing the change offactor values over time; and significant changes in spending behaviormay be detected to stop and/or prevent fraudulent activities.

For example, the factor values (344) can be used in regression modelsand/or neural network models for the detection of certain behaviors orpatterns. Since factors are relatively non-collinear, the factors canwork well as independent variables. For example, factors and clusterscan be used as independent variables in tree models.

For example, surrogate accounts can be selected for the construction ofa quasi-control group. For example, for a given account A that is in onecluster, the account B that is closest to the account A in the samecluster can be selected as a surrogate account of the account B. Thecloseness can be determined by certain values in the aggregated spendingprofile (341), such as factor values (344), category distribution (346),etc. For example, a Euclidian distance defined based on the set ofvalues from the aggregated spending profile (341) can be used to comparethe distances between the accounts. Once identified, the surrogateaccount can be used to reduce or eliminate bias in measurements. Forexample, to determine the effect of an advertisement, the spendingpattern response of the account A that is exposed to the advertisementcan be compared to the spending pattern response of the account B thatis not exposed to the advertisement.

For example, the aggregated spending profile (341) can be used insegmentation and/or filtering analysis, such as selecting cardholdershaving similar spending behaviors identified via factors and/or clustersfor targeted advertisement campaigns, and selecting and determining agroup of merchants that could be potentially marketed towardscardholders originating in a given cluster (e.g., for bundled offers).For example, a query interface can be provided to allow the query toidentify a targeted population based on a set of criteria formulatedusing the values of clusters and factors.

For example, the aggregated spending profile (341) can be used in aspending comparison report, such as comparing a sub-population ofinterest against the overall population, determining how clusterdistributions and mean factor values differ, and building reports formerchants and/or issuers for benchmarking purposes. For example, reportscan be generated according to clusters in an automated way for themerchants. For example, the aggregated spending profile (341) can beused in geographic reports by identifying geographic areas wherecardholders shop most frequently and comparing predominant spendinglocations with cardholder residence locations.

In one embodiment, the profile generator (121) provides affinityrelationship data in the transaction profiles (127) so that thetransaction profiles (127) can be shared with business partners withoutcompromising the privacy of the users (101) and the transaction details.

For example, in one embodiment, the profile generator (121) is toidentify clusters of entities (e.g., accounts, cardholders, families,businesses, cities, regions, etc.) based on the spending patterns of theentities. The clusters represent entity segments identified based on thespending patterns of the entities reflected in the transaction data(109) or the transaction records (301).

In one embodiment, the clusters correspond to cells or regions in themathematical space that contain the respective groups of entities. Forexample, the mathematical space representing the characteristics ofusers (101) may be divided into clusters (cells or regions). Forexample, the cluster analysis (329) may identify one cluster in the cellor region that contains a cluster of entity IDs (e.g., 322) in the spacehaving a plurality of dimensions corresponding to the variables (e.g.,313 and 315). For example, a cluster can also be identified as a cell orregion in a space defined by the factors using the factor definitions(331) generated from the factor analysis (327).

In one embodiment, the parameters used in the aggregated spendingprofile (341) can be used to define a segment or a cluster of entities.For example, a value for the cluster ID (343) and a set of ranges forthe factor values (344) and/or other values can be used to define asegment.

In one embodiment, a set of clusters are standardized to represent thepredilection of entities in various groups for certain products orservices. For example, a set of standardized clusters can be formulatedfor people who have shopped, for example, at home improvement stores.The cardholders in the same cluster have similar spending behavior.

In one embodiment, the tendency or likelihood of a user (101) being in aparticular cluster (i.e. the user's affinity to the cell) can becharacterized using a value, based on past purchases. The same user(101) may have different affinity values for different clusters.

For example, a set of affinity values can be computed for an entity,based on the transaction records (301), to indicate the closeness orpredilection of the entity to the set of standardized clusters. Forexample, a cardholder who has a first value representing affinity of thecardholder to a first cluster may have a second value representingaffinity of the cardholder to a second cluster. For example, if aconsumer buys a lot of electronics, the affinity value of the consumerto the electronics cluster is high.

In one embodiment, other indicators are formulated across the merchantcommunity and cardholder behavior and provided in the profile (e.g., 127or 341) to indicate the risk of a transaction.

In one embodiment, the relationship of a pair of values from twodifferent clusters provides an indication of the likelihood that theuser (101) is in one of the two cells, if the user (101) is shown to bein the other cell. For example, if the likelihood of the user (101) topurchase each of two types of products is known, the scores can be usedto determine the likelihood of the user (101) buying one of the twotypes of products if the user (101) is known to be interested in theother type of products. In one embodiment, a map of the values for theclusters is used in a profile (e.g., 127 or 341) to characterize thespending behavior of the user (101) (or other types of entities, such asa family, company, neighborhood, city, or other types of groups definedby other aggregate parameters, such as time of day, etc.).

In one embodiment, the clusters and affinity information arestandardized to allow sharing between business partners, such astransaction processing organizations, search providers, and marketers.Purchase statistics and search statistics are generally described indifferent ways. For example, purchase statistics are based on merchants,merchant categories, SKU numbers, product descriptions, etc.; and searchstatistics are based on search terms. Once the clusters arestandardized, the clusters can be used to link purchase informationbased merchant categories (and/or SKU numbers, product descriptions)with search information based on search terms. Thus, search predilectionand purchase predilection can be mapped to each other.

In one embodiment, the purchase data and the search data (or other thirdparty data) are correlated based on mapping to the standardized clusters(cells or segments). The purchase data and the search data (or otherthird party data) can be used together to provide benefits or offers(e.g., coupons) to consumers. For example, standardized clusters can beused as a marketing tool to provide relevant benefits, includingcoupons, statement credits, or the like to consumers who are within orare associated with common clusters. For example, a data exchangeapparatus may obtain cluster data based on consumer search engine dataand actual payment transaction data to identify like groups ofindividuals who may respond favorably to particular types of benefits,such as coupons and statement credits.

Details about aggregated spending profile (341) in one embodiment areprovided in U.S. pat. app. Ser. No. 12/777,173, filed May 10, 2010 andentitled “Systems and Methods to Summarize Transaction Data,” thedisclosure of which is hereby incorporated herein by reference.

Transaction Data Based Portal

In FIG. 1, the transaction terminal (105) initiates the transaction fora user (101) (e.g., a customer) for processing by a transaction handler(103). The transaction handler (103) processes the transaction andstores transaction data (109) about the transaction, in connection withaccount data (111), such as the account profile of an account of theuser (101). The account data (111) may further include data about theuser (101), collected from issuers or merchants, and/or other sources,such as social networks, credit bureaus, merchant provided information,address information, etc. In one embodiment, a transaction may beinitiated by a server (e.g., based on a stored schedule for recurrentpayments).

Over a period of time, the transaction handler (103) accumulates thetransaction data (109) from transactions initiated at differenttransaction terminals (e.g., 105) for different users (e.g., 101). Thetransaction data (109) thus includes information on purchases made byvarious users (e.g., 101) at various times via different purchasesoptions (e.g., online purchase, offline purchase from a retail store,mail order, order via phone, etc.)

In one embodiment, the accumulated transaction data (109) and thecorresponding account data (111) are used to generate intelligenceinformation about the purchase behavior, pattern, preference, tendency,frequency, trend, amount and/or propensity of the users (e.g., 101), asindividuals or as a member of a group. The intelligence information canthen be used to generate, identify and/or select targeted advertisementsfor presentation to the user (101) on the point of interaction (107),during a transaction, after a transaction, or when other opportunitiesarise.

FIG. 4 shows a system to provide information based on transaction data(109) according to one embodiment. In FIG. 4, the transaction handler(103) is coupled between an issuer processor (145) and an acquirerprocessor (147) to facilitate authorization and settlement oftransactions between a consumer account (146) and a merchant account(148). The transaction handler (103) records the transactions in thedata warehouse (149). The portal (143) is coupled to the data warehouse(149) to provide information based on the transaction records (301),such as the transaction profiles (127) or aggregated spending profile(341). The portal (143) may be implemented as a web portal, a telephonegateway, a file/data server, etc.

In one embodiment, the portal (143) is configured to receive queriesidentifying search criteria from the profile selector (129), theadvertisement selector (133) and/or third parties and in response, toprovide transaction-based intelligence requested by the queries.

For example, in one embodiment, a query is to specify a plurality ofaccount holders to request the portal (143) to deliver the transactionprofiles (127) of account holders in a batch mode.

For example, in one embodiment, a query is to identify the user (101) torequest the user specific profile (131), or the aggregated spendingprofile (341), of the user (101). The user (101) may be identified usingthe account data (111), such as the account number (302), or the userdata (125) such as browser cookie ID, IP address, etc.

For example, in one embodiment, a query is to identify a retaillocation; and the portal (143) is to provide a profile (e.g., 341) thatsummarizes the aggregated spending patterns of users who have shopped atthe retail location within a period of time.

For example, in one embodiment, a query is to identify a geographicallocation; and the portal (143) is to provide a profile (e.g., 341) thatsummarizes the aggregated spending patterns of users who have been to,or who are expected to visit, the geographical location within a periodof time (e.g., as determined or predicted based on the locations of thepoint of interactions (e.g., 107) of the users).

For example, in one embodiment, a query is to identify a geographicalarea; and the portal (143) is to provide a profile (e.g., 341) thatsummarizes the aggregated spending patterns of users who reside in thegeographical area (e.g., as determined by the account data (111), or whohave made transactions within the geographical area with a period oftime (e.g., as determined by the locations of the transaction terminals(e.g., 105) used to process the transactions).

In one embodiment, the portal (143) is configured to register certainusers (101) for various programs, such as a loyalty program to providerewards and/or offers to the users (101).

In one embodiment, the portal (143) is to register the interest of users(101), or to obtain permissions from the users (101) to gather furtherinformation about the users (101), such as data capturing purchasedetails, online activities, etc.

In one embodiment, the user (101) may register via the issuer; and theregistration data in the consumer account (146) may propagate to thedata warehouse (149) upon approval from the user (101).

In one embodiment, the portal (143) is to register merchants and provideservices and/or information to merchants.

In one embodiment, the portal (143) is to receive information from thirdparties, such as search engines, merchants, websites, etc. The thirdparty data can be correlated with the transaction data (109) to identifythe relationships between purchases and other events, such as searches,news announcements, conferences, meetings, etc., and improve theprediction capability and accuracy.

In FIG. 4, the consumer account (146) is under the control of the issuerprocessor (145). The consumer account (146) may be owned by anindividual, or an organization such as a business, a school, etc. Theconsumer account (146) may be a credit account, a debit account, or astored value account. The issuer may provide the consumer (e.g., user(101)) an account identification device (141) to identify the consumeraccount (146) using the account information (142). The respectiveconsumer of the account (146) can be called an account holder or acardholder, even when the consumer is not physically issued a card, orthe account identification device (141), in one embodiment. The issuerprocessor (145) is to charge the consumer account (146) to pay forpurchases.

In one embodiment, the account identification device (141) is a plasticcard having a magnetic strip storing account information (142)identifying the consumer account (146) and/or the issuer processor(145). Alternatively, the account identification device (141) is asmartcard having an integrated circuit chip storing at least the accountinformation (142). In one embodiment, the account identification device(141) includes a mobile phone having an integrated smartcard.

In one embodiment, the account information (142) is printed or embossedon the account identification device (141). The account information(142) may be printed as a bar code to allow the transaction terminal(105) to read the information via an optical scanner. The accountinformation (142) may be stored in a memory of the accountidentification device (141) and configured to be read via wireless,contactless communications, such as near field communications viamagnetic field coupling, infrared communications, or radio frequencycommunications. Alternatively, the transaction terminal (105) mayrequire contact with the account identification device (141) to read theaccount information (142) (e.g., by reading the magnetic strip of a cardwith a magnetic strip reader).

In one embodiment, the transaction terminal (105) is configured totransmit an authorization request message to the acquirer processor(147). The authorization request includes the account information (142),an amount of payment, and information about the merchant (e.g., anindication of the merchant account (148)). The acquirer processor (147)requests the transaction handler (103) to process the authorizationrequest, based on the account information (142) received in thetransaction terminal (105). The transaction handler (103) routes theauthorization request to the issuer processor (145) and may process andrespond to the authorization request when the issuer processor (145) isnot available. The issuer processor (145) determines whether toauthorize the transaction based at least in part on a balance of theconsumer account (146).

In one embodiment, the transaction handler (103), the issuer processor(145), and the acquirer processor (147) may each include a subsystem toidentify the risk in the transaction and may reject the transactionbased on the risk assessment.

In one embodiment, the account identification device (141) includessecurity features to prevent unauthorized uses of the consumer account(146), such as a logo to show the authenticity of the accountidentification device (141), encryption to protect the accountinformation (142), etc.

In one embodiment, the transaction terminal (105) is configured tointeract with the account identification device (141) to obtain theaccount information (142) that identifies the consumer account (146)and/or the issuer processor (145). The transaction terminal (105)communicates with the acquirer processor (147) that controls themerchant account (148) of a merchant. The transaction terminal (105) maycommunicate with the acquirer processor (147) via a data communicationconnection, such as a telephone connection, an Internet connection, etc.The acquirer processor (147) is to collect payments into the merchantaccount (148) on behalf of the merchant.

In one embodiment, the transaction terminal (105) is a POS terminal at atraditional, offline, “brick and mortar” retail store. In anotherembodiment, the transaction terminal (105) is an online server thatreceives account information (142) of the consumer account (146) fromthe user (101) through a web connection. In one embodiment, the user(101) may provide account information (142) through a telephone call,via verbal communications with a representative of the merchant; and therepresentative enters the account information (142) into the transactionterminal (105) to initiate the transaction.

In one embodiment, the account information (142) can be entered directlyinto the transaction terminal (105) to make payment from the consumeraccount (146), without having to physically present the accountidentification device (141). When a transaction is initiated withoutphysically presenting an account identification device (141), thetransaction is classified as a “card-not-present” (CNP) transaction.

In one embodiment, the issuer processor (145) may control more than oneconsumer account (146); the acquirer processor (147) may control morethan one merchant account (148); and the transaction handler (103) isconnected between a plurality of issuer processors (e.g., 145) and aplurality of acquirer processors (e.g., 147). An entity (e.g., bank) mayoperate both an issuer processor (145) and an acquirer processor (147).

In one embodiment, the transaction handler (103), the issuer processor(145), the acquirer processor (147), the transaction terminal (105), theportal (143), and other devices and/or services accessing the portal(143) are connected via communications networks, such as local areanetworks, cellular telecommunications networks, wireless wide areanetworks, wireless local area networks, an intranet, and Internet. Inone embodiment, dedicated communication channels are used between thetransaction handler (103) and the issuer processor (145), between thetransaction handler (103) and the acquirer processor (147), and/orbetween the portal (143) and the transaction handler (103).

In one embodiment, the transaction handler (103) uses the data warehouse(149) to store the records about the transactions, such as thetransaction records (301) or transaction data (109). In one embodiment,the transaction handler (103) includes a powerful computer, or clusterof computers functioning as a unit, controlled by instructions stored ona computer readable medium.

In one embodiment, the transaction handler (103) is configured tosupport and deliver authorization services, exception file services, andclearing and settlement services. In one embodiment, the transactionhandler (103) has a subsystem to process authorization requests andanother subsystem to perform clearing and settlement services.

In one embodiment, the transaction handler (103) is configured toprocess different types of transactions, such credit card transactions,debit card transactions, prepaid card transactions, and other types ofcommercial transactions.

In one embodiment, the transaction handler (103) facilitates thecommunications between the issuer processor (145) and the acquirerprocessor (147).

In one embodiment, the transaction handler (103) is coupled to theportal (143) (and/or the profile selector (129), the advertisementselector (133), the media controller (115)) to charge the fees for theservices of providing the transaction-based intelligence informationand/or advertisement.

For example, in one embodiment, the system illustrated in FIG. 1 isconfigured to deliver advertisements to the point of interaction (107)of the user (101), based on the transaction-based intelligenceinformation; and the transaction handler (103) is configured to chargethe advertisement fees to the account of the advertiser in communicationwith the issuer processor in control of the account of the advertiser.The advertisement fees may be charged in response to the presentation ofthe advertisement, or in response to the completion of a pre-determinednumber of presentations, or in response to a transaction resulted fromthe presentation of the advertisement. In one embodiment, thetransaction handler (103) is configured to a periodic fee (e.g., monthlyfee, annual fee) to the account of the advertiser in communication withthe respective issuer processor that is similar to the issuer processor(145) of the consumer account (146).

For example, in one embodiment, the portal (143) is configured toprovide transaction-based intelligence information in response to thequeries received in the portal (143). The portal (143) is to identifythe requesters (e.g., via an authentication, or the address of therequesters) and instruct the transaction handler (103) to charge theconsumer accounts (e.g., 146) of the respective requesters for thetransaction-based intelligence information. In one embodiment, theaccounts of the requesters are charged in response to the delivery ofthe intelligence information via the portal (143). In one embodiment,the accounts of the requesters are charged a periodic subscription feefor the access to the query capability of the portal (143).

In one embodiment, the information service provided by the systemillustrated in FIG. 1 includes multiple parties, such as one entityoperating the transaction handler (103), one entity operating theadvertisement data (135), one entity operating the user tracker (113),one entity operating the media controller (115), etc. The transactionhandler (103) is used to generate transactions to settle the fees,charges and/or divide revenues using the accounts of the respectiveparties. In one embodiment, the account information of the parties isstored in the data warehouse (149) coupled to the transaction handler(103). In some embodiments, a separate billing engine is used togenerate the transactions to settle the fees, charges and/or dividerevenues.

In one embodiment, the transaction terminal (105) is configured tosubmit the authorized transactions to the acquirer processor (147) forsettlement. The amount for the settlement may be different from theamount specified in the authorization request. The transaction handler(103) is coupled between the issuer processor (145) and the acquirerprocessor (147) to facilitate the clearing and settling of thetransaction. Clearing includes the exchange of financial informationbetween the issuer processor (145) and the acquirer processor (147); andsettlement includes the exchange of funds.

In one embodiment, the issuer processor (145) is to provide funds tomake payments on behalf of the consumer account (146). The acquirerprocessor (147) is to receive the funds on behalf of the merchantaccount (148). The issuer processor (145) and the acquirer processor(147) communicate with the transaction handler (103) to coordinate thetransfer of funds for the transaction. In one embodiment, the funds aretransferred electronically.

In one embodiment, the transaction terminal (105) may submit atransaction directly for settlement, without having to separately submitan authorization request.

In one embodiment, the portal (143) provides a user interface to allowthe user (101) to organize the transactions in one or more consumeraccounts (146) of the user with one or more issuers. The user (101) mayorganize the transactions using information and/or categories identifiedin the transaction records (301), such as merchant category (306),transaction date (303), amount (304), etc. Examples and techniques inone embodiment are provided in U.S. pat. app. Ser. No. 11/378,215, filedMar. 16, 2006, assigned Pub. No. 2007/0055597, and entitled “Method andSystem for Manipulating Purchase Information,” the disclosure of whichis hereby incorporated herein by reference.

In one embodiment, the portal (143) provides transaction basedstatistics, such as indicators for retail spending monitoring,indicators for merchant benchmarking, industry/market segmentation,indicators of spending patterns, etc. Further examples can be found inU.S. pat. app. Ser. No. 12/191,796, filed Aug. 14, 2008, assigned Pub.No. 2009/0048884, and entitled “Merchant Benchmarking Tool,” U.S. pat.app. Ser. No. 12/940,562, filed Nov. 5, 2010, and U.S. pat. app. Ser.No. 12/940,664, filed Nov. 5, 2010, the disclosures of whichapplications are hereby incorporated herein by reference.

Transaction Terminal

FIG. 5 illustrates a transaction terminal according to one embodiment.In FIG. 5, the transaction terminal (105) is configured to interact withan account identification device (141) to obtain account information(142) about the consumer account (146).

In one embodiment, the transaction terminal (105) includes a memory(167) coupled to the processor (151), which controls the operations of areader (163), an input device (153), an output device (165) and anetwork interface (161). The memory (167) may store instructions for theprocessor (151) and/or data, such as an identification that isassociated with the merchant account (148).

In one embodiment, the reader (163) includes a magnetic strip reader. Inanother embodiment, the reader (163) includes a contactless reader, suchas a radio frequency identification (RFID) reader, a near fieldcommunications (NFC) device configured to read data via magnetic fieldcoupling (in accordance with ISO standard 14443/NFC), a Bluetoothtransceiver, a WiFi transceiver, an infrared transceiver, a laserscanner, etc.

In one embodiment, the input device (153) includes key buttons that canbe used to enter the account information (142) directly into thetransaction terminal (105) without the physical presence of the accountidentification device (141). The input device (153) can be configured toprovide further information to initiate a transaction, such as apersonal identification number (PIN), password, zip code, etc. that maybe used to access the account identification device (141), or incombination with the account information (142) obtained from the accountidentification device (141).

In one embodiment, the output device (165) may include a display, aspeaker, and/or a printer to present information, such as the result ofan authorization request, a receipt for the transaction, anadvertisement, etc.

In one embodiment, the network interface (161) is configured tocommunicate with the acquirer processor (147) via a telephoneconnection, an Internet connection, or a dedicated data communicationchannel.

In one embodiment, the instructions stored in the memory (167) areconfigured at least to cause the transaction terminal (105) to send anauthorization request message to the acquirer processor (147) toinitiate a transaction. The transaction terminal (105) may or may notsend a separate request for the clearing and settling of thetransaction. The instructions stored in the memory (167) are alsoconfigured to cause the transaction terminal (105) to perform othertypes of functions discussed in this description.

In one embodiment, a transaction terminal (105) may have fewercomponents than those illustrated in FIG. 5. For example, in oneembodiment, the transaction terminal (105) is configured for“card-not-present” transactions; and the transaction terminal (105) doesnot have a reader (163).

In one embodiment, a transaction terminal (105) may have more componentsthan those illustrated in FIG. 5. For example, in one embodiment, thetransaction terminal (105) is an ATM machine, which includes componentsto dispense cash under certain conditions.

Account Identification Device

FIG. 6 illustrates an account identifying device according to oneembodiment. In FIG. 6, the account identification device (141) isconfigured to carry account information (142) that identifies theconsumer account (146).

In one embodiment, the account identification device (141) includes amemory (167) coupled to the processor (151), which controls theoperations of a communication device (159), an input device (153), anaudio device (157) and a display device (155). The memory (167) maystore instructions for the processor (151) and/or data, such as theaccount information (142) associated with the consumer account (146).

In one embodiment, the account information (142) includes an identifieridentifying the issuer (and thus the issuer processor (145)) among aplurality of issuers, and an identifier identifying the consumer accountamong a plurality of consumer accounts controlled by the issuerprocessor (145). The account information (142) may include an expirationdate of the account identification device (141), the name of theconsumer holding the consumer account (146), and/or an identifieridentifying the account identification device (141) among a plurality ofaccount identification devices associated with the consumer account(146).

In one embodiment, the account information (142) may further include aloyalty program account number, accumulated rewards of the consumer inthe loyalty program, an address of the consumer, a balance of theconsumer account (146), transit information (e.g., a subway or trainpass), access information (e.g., access badges), and/or consumerinformation (e.g., name, date of birth), etc.

In one embodiment, the memory includes a nonvolatile memory, such asmagnetic strip, a memory chip, a flash memory, a Read Only Memory (ROM),etc. to store the account information (142).

In one embodiment, the information stored in the memory (167) of theaccount identification device (141) may also be in the form of datatracks that are traditionally associated with credits cards. Such tracksinclude Track 1 and Track 2. Track 1 (“International Air TransportAssociation”) stores more information than Track 2, and contains thecardholder's name as well as the account number and other discretionarydata. Track 1 is sometimes used by airlines when securing reservationswith a credit card. Track 2 (“American Banking Association”) iscurrently most commonly used and is read by ATMs and credit cardcheckers. The ABA (American Banking Association) designed thespecifications of Track 1 and banks abide by it. It contains thecardholder's account number, encrypted PIN, and other discretionarydata.

In one embodiment, the communication device (159) includes asemiconductor chip to implement a transceiver for communication with thereader (163) and an antenna to provide and/or receive wireless signals.

In one embodiment, the communication device (159) is configured tocommunicate with the reader (163). The communication device (159) mayinclude a transmitter to transmit the account information (142) viawireless transmissions, such as radio frequency signals, magneticcoupling, or infrared, Bluetooth or WiFi signals, etc.

In one embodiment, the account identification device (141) is in theform of a mobile phone, personal digital assistant (PDA), etc. The inputdevice (153) can be used to provide input to the processor (151) tocontrol the operation of the account identification device (141); andthe audio device (157) and the display device (155) may present statusinformation and/or other information, such as advertisements or offers.The account identification device (141) may include further componentsthat are not shown in FIG. 6, such as a cellular communicationssubsystem.

In one embodiment, the communication device (159) may access the accountinformation (142) stored on the memory (167) without going through theprocessor (151).

In one embodiment, the account identification device (141) has fewercomponents than those illustrated in FIG. 6. For example, an accountidentification device (141) does not have the input device (153), theaudio device (157) and the display device (155) in one embodiment; andin another embodiment, an account identification device (141) does nothave components (151-159).

For example, in one embodiment, an account identification device (141)is in the form of a debit card, a credit card, a smartcard, or aconsumer device that has optional features such as magnetic strips, orsmartcards.

An example of an account identification device (141) is a magnetic stripattached to a plastic substrate in the form of a card. The magneticstrip is used as the memory (167) of the account identification device(141) to provide the account information (142). Consumer information,such as account number, expiration date, and consumer name may beprinted or embossed on the card. A semiconductor chip implementing thememory (167) and the communication device (159) may also be embedded inthe plastic card to provide account information (142) in one embodiment.In one embodiment, the account identification device (141) has thesemiconductor chip but not the magnetic strip.

In one embodiment, the account identification device (141) is integratedwith a security device, such as an access card, a radio frequencyidentification (RFID) tag, a security card, a transponder, etc.

In one embodiment, the account identification device (141) is a handheldand compact device. In one embodiment, the account identification device(141) has a size suitable to be placed in a wallet or pocket of theconsumer.

Some examples of an account identification device (141) include a creditcard, a debit card, a stored value device, a payment card, a gift card,a smartcard, a smart media card, a payroll card, a health care card, awrist band, a keychain device, a supermarket discount card, atransponder, and a machine readable medium containing accountinformation (142).

Point of Interaction

In one embodiment, the point of interaction (107) is to provide anadvertisement to the user (101), or to provide information derived fromthe transaction data (109) to the user (101).

In one embodiment, an advertisement is a marketing interaction which mayinclude an announcement and/or an offer of a benefit, such as adiscount, incentive, reward, coupon, gift, cash back, or opportunity(e.g., special ticket/admission). An advertisement may include an offerof a product or service, an announcement of a product or service, or apresentation of a brand of products or services, or a notice of events,facts, opinions, etc. The advertisements can be presented in text,graphics, audio, video, or animation, and as printed matter, webcontent, interactive media, etc. An advertisement may be presented inresponse to the presence of a financial transaction card, or in responseto a financial transaction card being used to make a financialtransaction, or in response to other user activities, such as browsing aweb page, submitting a search request, communicating online, entering awireless communication zone, etc. In one embodiment, the presentation ofadvertisements may be not a result of a user action.

In one embodiment, the point of interaction (107) can be one of variousendpoints of the transaction network, such as point of sale (POS)terminals, automated teller machines (ATMs), electronic kiosks (orcomputer kiosks or interactive kiosks), self-assist checkout terminals,vending machines, gas pumps, websites of banks (e.g., issuer banks oracquirer banks of credit cards), bank statements (e.g., credit cardstatements), websites of the transaction handler (103), websites ofmerchants, checkout websites or web pages for online purchases, etc.

In one embodiment, the point of interaction (107) may be the same as thetransaction terminal (105), such as a point of sale (POS) terminal, anautomated teller machine (ATM), a mobile phone, a computer of the userfor an online transaction, etc. In one embodiment, the point ofinteraction (107) may be co-located with, or near, the transactionterminal (105) (e.g., a video monitor or display, a digital sign), orproduced by the transaction terminal (e.g., a receipt produced by thetransaction terminal (105)). In one embodiment, the point of interaction(107) may be separate from and not co-located with the transactionterminal (105), such as a mobile phone, a personal digital assistant, apersonal computer of the user, a voice mail box of the user, an emailinbox of the user, a digital sign, etc.

For example, the advertisements can be presented on a portion of mediafor a transaction with the customer, which portion might otherwise beunused and thus referred to as a “white space” herein. A white space canbe on a printed matter (e.g., a receipt printed for the transaction, ora printed credit card statement), on a video display (e.g., a displaymonitor of a POS terminal for a retail transaction, an ATM for cashwithdrawal or money transfer, a personal computer of the customer foronline purchases), or on an audio channel (e.g., an interactive voiceresponse (IVR) system for a transaction over a telephonic device).

In one embodiment, the white space is part of a media channel availableto present a message from the transaction handler (103) in connectionwith the processing of a transaction of the user (101). In oneembodiment, the white space is in a media channel that is used to reportinformation about a transaction of the user (101), such as anauthorization status, a confirmation message, a verification message, auser interface to verify a password for the online use of the accountinformation (142), a monthly statement, an alert or a report, or a webpage provided by the portal (143) to access a loyalty program associatedwith the consumer account (146) or a registration program.

In other embodiments, the advertisements can also be presented via othermedia channels which may not involve a transaction processed by thetransaction handler (103). For example, the advertisements can bepresented on publications or announcements (e.g., newspapers, magazines,books, directories, radio broadcasts, television, digital signage, etc.,which may be in an electronic form, or in a printed or painted form).The advertisements may be presented on paper, on websites, onbillboards, on digital signs, or on audio portals.

In one embodiment, the transaction handler (103) purchases the rights touse the media channels from the owner or operators of the media channelsand uses the media channels as advertisement spaces. For example, whitespaces at a point of interaction (e.g., 107) with customers fortransactions processed by the transaction handler (103) can be used todeliver advertisements relevant to the customers conducting thetransactions; and the advertisement can be selected based at least inpart on the intelligence information derived from the accumulatedtransaction data (109) and/or the context at the point of interaction(107) and/or the transaction terminal (105).

In general, a point of interaction (e.g., 107) may or may not be capableof receiving inputs from the customers, and may or may not co-locatedwith a transaction terminal (e.g., 105) that initiates the transactions.The white spaces for presenting the advertisement on the point ofinteraction (107) may be on a portion of a geographical display space(e.g., on a screen), or on a temporal space (e.g., in an audio stream).

In one embodiment, the point of interaction (107) may be used toprimarily to access services not provided by the transaction handler(103), such as services provided by a search engine, a social networkingwebsite, an online marketplace, a blog, a news site, a televisionprogram provider, a radio station, a satellite, a publisher, etc.

In one embodiment, a consumer device is used as the point of interaction(107), which may be a non-portable consumer device or a portablecomputing device. The consumer device is to provide media content to theuser (101) and may receive input from the user (101).

Examples of non-portable consumer devices include a computer terminal, atelevision set, a personal computer, a set-top box, or the like.Examples of portable consumer devices include a portable computer, acellular phone, a personal digital assistant (PDA), a pager, a securitycard, a wireless terminal, or the like. The consumer device may beimplemented as a data processing system as illustrated in FIG. 7, withmore or fewer components.

In one embodiment, the consumer device includes an accountidentification device (141). For example, a smart card used as anaccount identification device (141) is integrated with a mobile phone,or a personal digital assistant (PDA).

In one embodiment, the point of interaction (107) is integrated with atransaction terminal (105). For example, a self-service checkoutterminal includes a touch pad to interact with the user (101); and anATM machine includes a user interface subsystem to interact with theuser (101).

Hardware

In one embodiment, a computing apparatus is configured to include someof the modules or components illustrated in FIGS. 1 and 4, such as thetransaction handler (103), the profile generator (121), the mediacontroller (115), the portal (143), the profile selector (129), theadvertisement selector (133), the user tracker (113), the correlator,and their associated storage devices, such as the data warehouse (149).

In one embodiment, at least some of the modules or componentsillustrated in FIGS. 1 and 4, such as the transaction handler (103), thetransaction terminal (105), the point of interaction (107), the usertracker (113), the media controller (115), the correlator (117), theprofile generator (121), the profile selector (129), the advertisementselector (133), the portal (143), the issuer processor (145), theacquirer processor (147), and the account identification device (141),can be implemented as a computer system, such as a data processingsystem illustrated in FIG. 7, with more or fewer components. Some of themodules may share hardware or be combined on a computer system. In oneembodiment, a network of computers can be used to implement one or moreof the modules.

Further, the data illustrated in FIG. 1, such as transaction data (109),account data (111), transaction profiles (127), and advertisement data(135), can be stored in storage devices of one or more computersaccessible to the corresponding modules illustrated in FIG. 1. Forexample, the transaction data (109) can be stored in the data warehouse(149) that can be implemented as a data processing system illustrated inFIG. 7, with more or fewer components.

In one embodiment, the transaction handler (103) is a payment processingsystem, or a payment card processor, such as a card processor for creditcards, debit cards, etc.

FIG. 7 illustrates a data processing system according to one embodiment.While FIG. 7 illustrates various components of a computer system, it isnot intended to represent any particular architecture or manner ofinterconnecting the components. One embodiment may use other systemsthat have fewer or more components than those shown in FIG. 7.

In FIG. 7, the data processing system (170) includes an inter-connect(171) (e.g., bus and system core logic), which interconnects amicroprocessor(s) (173) and memory (167). The microprocessor (173) iscoupled to cache memory (179) in the example of FIG. 7.

In one embodiment, the inter-connect (171) interconnects themicroprocessor(s) (173) and the memory (167) together and alsointerconnects them to input/output (I/O) device(s) (175) via I/Ocontroller(s) (177). I/O devices (175) may include a display deviceand/or peripheral devices, such as mice, keyboards, modems, networkinterfaces, printers, scanners, video cameras and other devices known inthe art. In one embodiment, when the data processing system is a serversystem, some of the I/O devices (175), such as printers, scanners, mice,and/or keyboards, are optional.

In one embodiment, the inter-connect (171) includes one or more busesconnected to one another through various bridges, controllers and/oradapters. In one embodiment the I/O controllers (177) include a USB(Universal Serial Bus) adapter for controlling USB peripherals, and/oran IEEE-1394 bus adapter for controlling IEEE-1394 peripherals.

In one embodiment, the memory (167) includes one or more of: ROM (ReadOnly Memory), volatile RAM (Random Access Memory), and non-volatilememory, such as hard drive, flash memory, etc.

Volatile RAM is typically implemented as dynamic RAM (DRAM) whichrequires power continually in order to refresh or maintain the data inthe memory. Non-volatile memory is typically a magnetic hard drive, amagnetic optical drive, an optical drive (e.g., a DVD RAM), or othertype of memory system which maintains data even after power is removedfrom the system. The non-volatile memory may also be a random accessmemory.

The non-volatile memory can be a local device coupled directly to therest of the components in the data processing system. A non-volatilememory that is remote from the system, such as a network storage devicecoupled to the data processing system through a network interface suchas a modem or Ethernet interface, can also be used.

In this description, some functions and operations are described asbeing performed by or caused by software code to simplify description.However, such expressions are also used to specify that the functionsresult from execution of the code/instructions by a processor, such as amicroprocessor.

Alternatively, or in combination, the functions and operations asdescribed here can be implemented using special purpose circuitry, withor without software instructions, such as using Application-SpecificIntegrated Circuit (ASIC) or Field-Programmable Gate Array (FPGA).Embodiments can be implemented using hardwired circuitry withoutsoftware instructions, or in combination with software instructions.Thus, the techniques are limited neither to any specific combination ofhardware circuitry and software, nor to any particular source for theinstructions executed by the data processing system.

While one embodiment can be implemented in fully functioning computersand computer systems, various embodiments are capable of beingdistributed as a computing product in a variety of forms and are capableof being applied regardless of the particular type of machine orcomputer-readable media used to actually effect the distribution.

At least some aspects disclosed can be embodied, at least in part, insoftware. That is, the techniques may be carried out in a computersystem or other data processing system in response to its processor,such as a microprocessor, executing sequences of instructions containedin a memory, such as ROM, volatile RAM, non-volatile memory, cache or aremote storage device.

Routines executed to implement the embodiments may be implemented aspart of an operating system or a specific application, component,program, object, module or sequence of instructions referred to as“computer programs.” The computer programs typically include one or moreinstructions set at various times in various memory and storage devicesin a computer, and that, when read and executed by one or moreprocessors in a computer, cause the computer to perform operationsnecessary to execute elements involving the various aspects.

A machine readable medium can be used to store software and data whichwhen executed by a data processing system causes the system to performvarious methods. The executable software and data may be stored invarious places including for example ROM, volatile RAM, non-volatilememory and/or cache. Portions of this software and/or data may be storedin any one of these storage devices. Further, the data and instructionscan be obtained from centralized servers or peer to peer networks.Different portions of the data and instructions can be obtained fromdifferent centralized servers and/or peer to peer networks at differenttimes and in different communication sessions or in a same communicationsession. The data and instructions can be obtained in entirety prior tothe execution of the applications. Alternatively, portions of the dataand instructions can be obtained dynamically, just in time, when neededfor execution. Thus, it is not required that the data and instructionsbe on a machine readable medium in entirety at a particular instance oftime.

Examples of computer-readable media include but are not limited torecordable and non-recordable type media such as volatile andnon-volatile memory devices, read only memory (ROM), random accessmemory (RAM), flash memory devices, floppy and other removable disks,magnetic disk storage media, optical storage media (e.g., Compact DiskRead-Only Memory (CD ROMS), Digital Versatile Disks (DVDs), etc.), amongothers. The computer-readable media may store the instructions.

The instructions may also be embodied in digital and analogcommunication links for electrical, optical, acoustical or other formsof propagated signals, such as carrier waves, infrared signals, digitalsignals, etc. However, propagated signals, such as carrier waves,infrared signals, digital signals, etc. are not tangible machinereadable medium and are not configured to store instructions.

In general, a machine readable medium includes any apparatus thatprovides (i.e., stores and/or transmits) information in a formaccessible by a machine (e.g., a computer, network device, personaldigital assistant, manufacturing tool, any device with a set of one ormore processors, etc.).

In various embodiments, hardwired circuitry may be used in combinationwith software instructions to implement the techniques. Thus, thetechniques are neither limited to any specific combination of hardwarecircuitry and software nor to any particular source for the instructionsexecuted by the data processing system.

Other Aspects

The description and drawings are illustrative and are not to beconstrued as limiting. Numerous specific details are described toprovide a thorough understanding. However, in certain instances, wellknown or conventional details are not described in order to avoidobscuring the description. References to one or an embodiment in thepresent disclosure are not necessarily references to the sameembodiment; and, such references mean at least one.

The use of headings herein is merely provided for ease of reference, andshall not be interpreted in any way to limit this disclosure or thefollowing claims.

Reference to “one embodiment” or “an embodiment” means that a particularfeature, structure, or characteristic described in connection with theembodiment is included in at least one embodiment of the disclosure. Theappearances of the phrase “in one embodiment” in various places in thespecification are not necessarily all referring to the same embodiment,and are not necessarily all referring to separate or alternativeembodiments mutually exclusive of other embodiments. Moreover, variousfeatures are described which may be exhibited by one embodiment and notby others. Similarly, various requirements are described which may berequirements for one embodiment but not other embodiments. Unlessexcluded by explicit description and/or apparent incompatibility, anycombination of various features described in this description is alsoincluded here.

The disclosures of the above discussed patent documents are herebyincorporated herein by reference.

In the foregoing specification, the disclosure has been described withreference to specific exemplary embodiments thereof. It will be evidentthat various modifications may be made thereto without departing fromthe broader spirit and scope as set forth in the following claims. Thespecification and drawings are, accordingly, to be regarded in anillustrative sense rather than a restrictive sense.

1. A computer-implemented method, comprising: correlating, by acomputing device, first transactions with an advertisement; determining,by the computing device, first customers who made the firsttransactions; identifying, by the computing device, a first set oftransactions of the first customers; determining, by the computingdevice, second customers not in the first customers; identifying, by thecomputing device, a second set of transactions of the second customers;and comparing, by the computing device, a first pattern in the first setof transactions and a second pattern in the second set of transactions.2. The method of claim 1, wherein the first set of transactions are madebetween the first customers and a merchant; and the second set oftransactions are made between the second customers and the merchant. 3.The method of claim 2, wherein the first set of transactions and thesecond set of transactions are made after the first transactions; andthe first pattern and the second pattern are compared to determineinfluence of the advertisement.
 4. The method of claim 1, wherein thefirst set of transactions and the second set of transactions are madeprior to presentation of the advertisement.
 5. The method of claim 1,wherein the advertisement is presented in a time period in a commercialdistrict.
 6. The method of claim 5, wherein the second customers aredetermined based on the second customers having performed secondtransactions outside the commercial district during the time period. 7.The method of claim 1, wherein the first set of transactions includesthe first transactions correlated with the advertisement.
 8. The methodof claim 1, wherein the comparing of the first pattern and the secondpattern comprises identifying a difference in the first pattern and thesecond pattern.
 9. The method of claim 8, wherein the first pattern isbased on a first aggregated spending profile of the first customers; andthe second pattern is based on a second aggregated spending profile ofthe second customers.
 10. The method of claim 9, wherein the differenceis in a factor value defined based on a factor analysis of transactiondata processed by a transaction handler.
 11. The method of claim 1,wherein the advertisement is presented in a digital form; and the firsttransactions are initiated in offline retail stores.
 12. The method ofclaim 11, wherein the advertisement includes an offer; and the firsttransactions are processed in connection with redemption of the offer.13. The method of claim 11, further comprising: associating the offerwith accounts of the first customers in response to input received fromthe first customers.
 14. The method of claim 13, further comprising:receiving the input from the first customers via mobile phones of thefirst customers.
 15. The method of claim 13, wherein the input comprisesa selection of the advertisement by the first customer.
 16. The methodof claim 13, wherein payments made using the accounts are processed by atransaction handler, each of the payments being processed to make apayment from an issuer to an acquirer via the transaction handler inresponse to an account identifier of the accounts, as issued by theissuer, being submitted by a merchant to the acquirer, the issuer tomake the payment on behalf of a respective customer, the acquirer toreceive the payment on behalf of the merchant.
 17. The method of claim1, further comprising: presenting a difference between the first patternin the first set of transactions of the first customers and the secondpattern in the second set of transactions of the second customers.
 18. Atangible computer-readable storage medium storing instructions which,when executed on a computer, cause the computer to perform a methodcomprising: correlating first transactions with an advertisement;determining first customers who made the first transactions; identifyinga first set of transactions of the first customers; determining secondcustomers not in the first customers; identifying a second set oftransactions of the second customers; and presenting a differencebetween a first pattern in the first set of transactions and a secondpattern in the second set of transactions.
 19. A computing apparatus,comprising: a transaction handler to process transactions, each of thetransactions being processed to make a payment from an issuer to anacquirer via the transaction handler in response to an accountidentifier of a customer, as issued by the issuer, being submitted by amerchant to the acquirer, the issuer to make the payment on behalf ofthe customer, the acquirer to receive the payment on behalf of themerchant; a data warehouse to store data recording the transactions; andat least one processor coupled with the data warehouse and configured toidentify first customers who made first transactions correlated with anadvertisement, identify second customers not in the first customers, anddetermine a difference between a first pattern in a first set oftransactions of the first customers and a second pattern in a second setof transactions of the second customers.
 20. The apparatus of claim 19,further comprising: a portal configured to receive input to associatethe advertisement with account identifiers of the first customers.